Credit union trades applaud CFPB decision to supervise fintechs

by David Baumann, CUCollaborate

The Consumer Financial Protection Bureau (CFPB)’s decision to establish supervisory powers over nonbank financial institutions will level the playing field and subject those companies to much-needed scrutiny, credit union trade groups informed the agency Tuesday.

“These business models of nonbank providers often rely on avoiding accountability and prudent regulation,” Alexander Monterrubio, senior director of advocacy and counsel for consumer protection at the Credit Union National Association (CUNA), told the agency. “We agree that there is a benefit to consumers in the bureau supervising these entities and subjecting them to the same standards as traditional financial institutions.”

An official from the National Association of Federally-Insured Credit Unions (NAFCU) agreed.

“The Bureau’s exercise of its supervisory authority over fintechs that pose risks to consumers is a first step toward closing supervisory gaps and establishing a level playing field in the consumer finance market,” James Akin, NAFCU’s regulatory affairs counsel, wrote in a comment letter.

 

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