WASHINGTON, D.C (December 10, 2024) |
Today, the Defense Credit Union Council (DCUC) sent a letter to Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown and Ranking Member Tim Scott, advocating for balanced oversight of the Consumer Financial Protection Bureau (CFPB).
DCUC provided its letter ahead of the Committee’s hearing, “Consumer Protection: Protecting Workers’ Money and Fighting for the Dignity of Work,” drawing concerns over the potential risks posed by recent CFPB regulatory priorities, including overdraft protection policies, credit card late fee limits, and proposed data-sharing rules under Section 1033.
DCUC Chief Advocacy Officer Jason Stverak stressed that overdraft protection is a crucial safety net for these important communities, especially during deployments or relocations, and promotes military financial readiness. The CFPB’s scrutiny of these programs threatens access to vital financial services. DCUC also warned that imposing restrictive caps on credit card late fees could hinder credit unions’ ability to provide affordable credit and reinvest in military focused programs.
Following the proposed Section 1033 rule, DCUC raised concerns about exposing military families to increased cybersecurity and privacy risks, urging Congress to ensure robust protections for sensitive consumer data while avoiding excessive compliance burdens on credit unions.
DCUC’s letter continued by highlighting broader issues of regulatory overreach, noting that burdensome CFPB rules disproportionately affect smaller institutions like defense credit unions. These regulations strain resources critical to providing financial services tailored to military communities. Stverak proposed structural reforms to the CFPB to ensure greater accountability and transparency, including establishing a bipartisan five-member commission - replacing the single-director model with a commission would enhance stability, continuity, and collaboration in CFPB policymaking; and require congressional appropriations for CFPB funding. DCUC believes subjecting the CFPB’s budget to congressional oversight would align its funding process with other financial regulators and improve accountability.
DCUC called on the Committee to prioritize these reforms during CFPB Director Rohit Chopra’s testimony and emphasized the need to balance consumer protection with the operational realities of community-focused credit unions.
“DCUC remains committed to working with Congress and the CFPB to protect consumers while ensuring that financial institutions serving military communities can continue to provide essential services,” said Stverak.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.