WASHINGTON—Will America’s Credit Unions support dismantling the CFPB?
According to sources who attended the recent American Association of Credit Union Leagues (AACUL) 2024 Winter Conference in Miami, the trade association may be prepared to take that stance next year if the Republican administration moves in that direction.
CUToday.info has learned from sources that ACU President and CEO Jim Nussle, during his address in a closed AACUL session, suggested the trade group would back eliminating the CFPB.
Jim Nussle
CUToday.info contacted ACU, and the trade association noted that Nussle’s AACUL speech outlined several of America's Credit Unions' advocacy priorities to defend the industry against threats, one of which is the CFPB's overreach.
“The credit union industry has consistently advocated against oversight by the CFPB. After all, credit unions were the original consumer protectors, stepping in to provide safe and affordable financial services when banks turned certain consumers away,” Nussle told CUToday.info in an emailed statement. “Credit unions remain committed to serving people in need and strengthening people’s financial well-being. America’s Credit Unions will fight for reforms to ensure the CFPB's overzealous regulatory approach is reined in."
DCUC’s Stance
The Defense Credit Union Council spoke with CUToday.info about its stance on the CFPB.
“With a Republican administration, a Republican House, a Republican Senate…We look forward to a new director that will return the agency to its focus and not be interested in over regulation, and allow credit unions to serve their members—instead of going after credit unions and other financial institutions on credit card late fees and overdraft fees. The agency needs to focus on the truly bad actors in the financial services system,” said DCUC Chief Advocacy Officer Jason Stverak.
While Republicans control both Congressional chambers and the Administration, there are not 60 votes in the Senate to make a bill filibuster proof, Stverak pointed out.
Jason Stverak
“We look forward to robust reforms at the CFPB, starting at the top. We support the proposed three-to-five-member commission to take the power away from one individual and make it more of a consensus building group, like we see in most federal agencies, specifically ones in the financial services sector,” Stverak said. “Look at the FDIC and NCUA—it's multiple people coming together to make decisions that are in the best interest of the consumers.”
DCUC also supports modifying the CFPB’s funding process, placing it under Congressional control to provide a “check and balance.”
Asked if backing elimination of the CFPB would be a good move for credit unions, Stverak said dismantling the CU would be a monumental task.
“Ranking member of the Senate Banking Committee Elizabeth Warren (D-MA) has strong support among Democrat members of both the
Anthony Hernandez
House and the Senate,” he said. “At DCUC we understand we have to work with both Republicans and Democrats to make the changes, both regulatory and statutory, that benefit our members, so they can serve millions of active duty servicemembers, their families and veterans. When you alienate one side in favor of the other it can make it more difficult to achieve your legislative agenda. At DCUC we've proven that we will be fierce friends and strong opponents, but always on behalf of the best interests of defense credit unions and the entire credit union industry.”
Careful Next Steps
DCUC President and CEO Anthony Hernandez emphasized that credit unions must carefully consider next steps regarding the CFPB.
“I am always concerned about second- and third-order effects, and next year’s tax battle is going to require votes on both sides of the aisle,” Hernandez said. "However, DCUC has heard loud and clear from our members they want to press for changes to the CFPB. We are ready to move forward accordingly on that issue in the 119th Congress."