WASHINGTON—Warning that credit unions have been left without a formal voice inside the nation’s top consumer-protection agency, the Defense Credit Union Council is pressing the White House to restore the CFPB’s Credit Union Advisory Council (CUAC)—and offering to help cover the costs of reinstating and operating the council.
In a letter sent Friday to Office of Management and Budget Director Russell Vought, DCUC President and CEO Anthony Hernandez urged Vought to help reverse the executive-order provision that disbanded CUAC—or to support establishing a new advisory council to ensure credit-union perspectives are represented in CFPB policymaking.
“The importance of the Credit Union Advisory Council cannot be overstated and has historically provided a critical forum for credit unions to share their on-the-ground expertise with CFPB leadership,” said Hernandez. “Every administration, both Republican or Democrat, has appointed former bank executives and supporters to key positions (Treasury, FDIC, OCC, etc.), which naturally breeds greater familiarity with the banking industry.”
DCUC’s letter cites four benefits for bringing back the CUAC that would yield immediate and long-term advantages:
Better Policy Outcomes: Regulators would receive timely feedback on how proposed rules or enforcement actions impact credit union members at the grassroots level. This feedback can help avoid unintended consequences and craft regulations that protect consumers without stifling the affordable services credit unions provide.
Enhanced Communication: The CUAC’s meetings and reports serve as a formal conduit for information exchange. This ensures that Washington hears directly from institutions putting consumers first, complementing the input they get from banks and other stakeholders. It also helps credit unions understand regulatory priorities straight from CFPB leadership, improving compliance and cooperation
Representation of All Communities: Credit unions often serve communities that are underserved by traditional banks – including military bases, rural areas, and underserved urban neighborhoods. Through the CUAC, these communities’ financial service needs and challenges can be voiced to federal policymakers. This aligns with the Bureau’s mandate to protect all consumers, including those served by member-owned cooperatives.
Cross-Government Insight: While housed at the CFPB, the CUAC’s insights can inform the broader government as well. When appropriate, the Council’s advice could be shared with other agencies or Congress, ensuring credit union priorities are considered across the government when consumer finance issues are discussed. This advisory body can then act as a resource for the entire administration in understanding the credit union sector’s role in the financial ecosystem.
“The CUAC can offer unique insights into how regulations affect over 144 million Americans who rely on credit unions for financial services,” stated Hernandez. “In fact, credit unions have always been a lifeline to consumers in hard times, particularly for many Americans located in rural, military, and non-industrial communities as they struggle to make ends meet.
"Without a credit union advisory council, the lack of essential dialogue between credit unions and regulators results in unbalanced policy outcomes,” continued Hernandez. “In the past, even when credit union input wasn’t always heeded, the existence of the CUAC ensured that policymakers heard directly from institutions that prioritize ‘people over profit in their mission.”
In order to eliminate any fiscal concern that might hinder the council’s reinstatement, DCUC said it offered, in its letter to Vought, to help underwrite or defray the administrative costs of running the CUAC. DCUC’s offer includes covering logistical expenses for meetings and leveraging technology (such as virtual meeting platforms) to reduce costs. The goal is to foster collaboration and communication, not to create expense or bureaucracy, Hernandez explained.