In light of the Consumer Financial Protection Bureau’s (CFPB) proposed overdraft rule and recent meetings with congressional legislators, the California and Nevada Credit Union Leagues are asking credit unions to elevate their voice through a dual approach.
The Leagues have provided everything you need below.
First: Partner with Congress by Signing a Joint Letter (March 18 Deadline)
After credit unions’ meetings with members of Congress during the Governmental Affairs Conference last week in Washington, D.C., the Leagues received positive feedback from congressional legislators regarding concerns on the CFPB’s proposed overdraft rule.
To gain momentum, credit unions are now being asked to sign a joint comment letter that the Leagues are preparing to send to the CFPB (click the link and it will appear in your browser’s download folder). The goal is to have as many credit unions sign as possible. The last day to sign this joint letter is Monday, March 18.
The Leagues will ask members of Congress to forward this letter to the CFPB and express concern about the proposed rule. To add your credit union to the list, email Stephanie Cuevas (senior vice president of federal government affairs) and Lisa Quaranta (vice president of regulatory affairs and compliance).
If your credit union has testimonials from members who have expressed the benefits of overdraft protection services, please also send them to Stephanie Cuevas and Lisa Quaranta (above) so the Leagues can include it in the final joint credit union comment letter.
Next: Send a Unique Credit Union Letter to the CFPB
Credit unions can participate in the public comment period by sending a letter after the CFPB’s proposed overdraft rule is published in the Federal Register. Sending unique comments strengthens the voice of credit unions during the regulatory process.
To send a comment, please view the comment period toolkit for instructions (includes a template letter for your consideration), as well as the Leagues’ executive summary on the proposed overdraft rule. It’s important to personalize your letter to ensure the CFPB gives full and fair consideration to your credit union’s comments.
A Side Note on CA Attorney General’s Recent Announcement
California Attorney General Rob Bonta recently issued a letter to credit unions and banks with assets under $10 billion warning that overdraft and returned deposited-item fees may violate California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA). You can read more here.
The Leagues have confirmed that the attorney general’s letter embraces the 2022 guidance from the CFPB. The Leagues have weighed various options, and given that this is a repeat in guidance, the Leagues do not believe engaging with the attorney general would benefit the credit union cause. The Leagues will continue to monitor the situation and intervene when necessary.
The Leagues would like to thank credit union leaders for their continued advocacy efforts. If you have any questions about these developments, please email Lisa Quaranta.
