Compliance

CUNA Urges CFPB to Provide Reg Relief

Agency says it will develop recommendations to address regulatory streamlining issues.

January 23, 2012
/ PRINT / ShareShare / Text Size +

CUNA expressed concerns about redundant and burdensome regulatory requirements and proposed several ideas for improving rules affecting credit unions during a meeting last week with the Consumer Financial Protection Bureau (CFPB).

Mary Dunn, CUNA’s deputy general counsel/senior vice president, addressed a number of issues with senior CFPB staff regarding:

  • ATM disclosures. Requirements for duplicate disclosures on ATM screens and on the outside of the machines are not only redundant, they open the door to litigation when the outside notices have been removed, destroyed, or otherwise disabled;
  • The need for a higher trigger level for purposes of reporting and compliance under the Home Mortgage Disclosure Act (Regulation C);
  • The need for changes to the Truth in Lending Act, in particular to the commentary regarding multi-featured, open-end lending products;
  • Limiting any possible CFPB data collections;
  • Concerns about annual privacy notices; and
  • Recommendations for further consolidating adverse action notices under Regulation B (Equal Opportunity Act and the Fair Credit Reporting Act) and relief from annual privacy notices.

In addition, CUNA urged the agency to streamline the regulatory requirements associated with mortgages and credit cards. CFPB is seeking comments through February 21 on streamlining the rules that were transferred to it in July.

CUNA will file an extensive comment letter after obtaining input from a number of its subcommittees, councils, and leagues.

CFPB said it wanted to “identify areas of real concern” and develop useful recommendations to address regulatory streamlining issues.

Payday lending

CFPB held its first field hearing last week on payday lending in Birmingham, Ala. Agency Director Richard Cordray spoke about the need to examine and supervise payday lenders to ensure compliance with federal consumer financial laws.

Patrick La Pine, president/CEO of The League of Southeastern Credit Unions, and his staff coordinated with the CFPB regarding the participation of Daryl McMinn, vice president of operations at Listerhill Credit Union.

In his testimony, McMinn emphasized that credit unions provide better small, short-term loan alternatives to high fee payday lenders. He provided examples of how Listerhill provides loans and other financial services to its members, as well as financial literacy programs.

In addition, he urged the agency to concentrate on the problem areas with under-regulated or unregulated financial service providers, and not to increase the already enormous regulatory burdens on credit unions.

The hearing coincided with the release of CFPB’s “Short-Term, Small-Dollar Lending Procedures” field guide that CFPB examiners will use to supervise and examine payday lenders with regard to federal consumer financial laws.

For the first time, CFPB will be able to supervise and examine all nonbank payday lenders. The field guide also describes the types of information that CFPB examiners will gather to evaluate payday lender policies and procedures, assess whether lenders are in compliance, and identify risks to consumers throughout the lending process.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive