WASHINGTON—The CFPB should delay significant regulatory activities until after the 2025 presidential transition to align with the incoming administration’s priorities and avoid legal challenges, America’s Credit Unions wrote to CFPB Director Rohit Chopra.
With the CFPB director removable at the president’s discretion, and the incoming administration likely to bring new policy priorities, adding the delay would help maintain economic stability, ACU said.
The letter, authored by Regulatory Advocacy Senior Counsel James Akin, continued to highlight concerns with CFPB initiatives including anticipated rulemaking on “junk fees,” medical debt exclusion on credit reports, and proposed changes to mortgage closing costs – as these initiatives pose potential legal risk and would adversely impact consumers and financial institutions, Akin said.
Additionally, Akin said credit unions look forward to a post-transition CFPB, advocating for a recalibration to the agency that includes a “more disciplined approach to rulemaking, enforcement, and retrospective regulatory review, as well as a focus on reducing unnecessary burdens on financial institutions like credit unions that play a vital role in local communities.”
Specific recommendations:
- Better adherence to the Administrative Procedure Act
- More robust cost-benefit analysis
- Clearer regulatory standards
- More effective collaboration with stakeholders