Trade groups NAFCU and CUNA both in support of the NCUA and CFPB working more closely together.
The Consumer Financial Protection Bureau (CFPB) will begin providing other financial regulators, including the National Credit Union Administration (NCUA), with guidance on how it intends to enforce federal law, the agency revealed Monday.
In announcing the new process, the CFPB noted that while the agency is the primary regulator responsible for implementing consumer protection laws, it is not the only federal or state regulator with that job.
“Enforcement responsibility is spread among a large set of state and federal government agencies to protect families and honest businesses together,” the agency stated.
In explaining the need for the new process, bureau officials said there is a risk that companies might face inconsistent enforcement strategies among the regulators. They also claimed it is important for other regulators to consistently apply the laws the CFPB administers, and therefore the agency will begin issuing circulars specifically on enforcement.
CFPB officials said further they have begun identifying issues that should be addressed using the new process and urged other regulators to make their own suggestions.
The Response from Credit Union Groups
In the past, the Credit Union National Association (CUNA), and the National Association of Federally-Insured Credit Unions (NAFCU) have both implored the CFPB to work more closely with the NCUA.
When CFPB Director Rohit Chopra testified before congressional committees recently, the trade groups sent letters to members of Congress urging better coordination among regulators.
NAFCU asked that the CFPB work closely with the NCUA to determine whether certain powers the NCUA has might also be subject to the CFPB’s power to enforce rules surrounding Unfair, Deceptive, or Abusive Acts or Practices. The group also requested that the two agencies coordinate examinations to ensure they are not examining a credit union simultaneously or consecutively.
CUNA, in its letter, claimed credit unions are best positioned to succeed when policy decisions are made by a regulatory agency that has significant familiarity with the characteristics that differentiate them from other financial services providers.
“For that reason, the CFPB should work more closely with the [NCUA] throughout the policymaking process and avoid implementing policies that conflict with or are duplicative of those issued by the agency, especially regarding examinations,” the organization wrote.