WASHINGTON—Both NAFCU and CUNA expect the CFPB will be very active in 2016 with financial services regulations.
“In prior years the CFPB emphasis has been on mortgage regulations and we are now starting to steer away from that and get into other types of products,” said Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer. “We expect to see regulatory activity on issues related to debt collection, payday small dollar loans, overdraft protection products, overtime pay and other areas.”
NAFCU noted that for the past two years the CFPB has listed overdraft on its rulemaking agenda.
“Based on conversations with CFPB staff, NAFCU believes the Bureau will begin its overdraft rulemaking process in early 2016,” the trade association stated. “NAFCU is staying in close contact with CFPB to monitor its timeframe for rulemaking, and it will work to ensure that the substance of any rule does not curtail credit unions’ overdraft programs.”
NAFCU said it expects the bureau to issue a notice of proposed rulemaking on payday lending soon.
“CFPB is considering imposing several requirements that would limit federal credit unions’ ability to offer NCUA-authorized payday alternative loans, or PALs. NAFCU has met several times with the bureau to discuss PALs and will continue to meet with CFPB to ensure that this rulemaking does not impose any unintended consequences on credit unions,” NAFCU stated.
NAFCU President and CEO Dan Berger said the trade association will advocate for improvements to the Dodd-Frank Act that would “help ease some of the unnecessary burden placed on credit unions through the actions of CFPB.”