Mar 13 2014

Is the CFPB Listening? Credit Unions Under Dodd-Frank


The Consumer Financial Protection Bureau does listen to credit unions, but doesn't necessarily act to support them. Like credit unions, the CFPB’s purpose is to support consumers, so credit unions must position their feedback as consumer-focused. The CFPB’s approach may or may not ultimately help consumers. Even allowing that the CFPB’s intentions are good, further regulation of the financial industry in general—and credit unions in particular—is likely to have unintended consequences, like driving up compliance costs, increasing merger pressure, and driving services into less visible corners of the market.

This report examines how credit unions can appeal to the CFPB by structuring arguments in terms of consumer benefit, supporting claims with clear data, and being patient. Turner offers tactics and strategies for convincing the CFPB to acknowledge various credit union issues and concerns. 

Report Number 323