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TELL YOUR CFPB STORY
The Consumer Financial Protection Bureau (CFPB) and its regulations have been harming your credit union and your members.
Congress now needs your specific testimonials and statistics reflecting how the CFPB has impacted your ability to serve your members. The League needs specific examples of programs, products and services that have been negatively affected by the CFPB's one-size-fits-all regulations.
Members of Congress are seeking details on how CFPB over-regulation is harming community lending. Help us tell your story to the California and Nevada Congressional delegations.
Please note, this is not a "one-time-use" page. As new examples arise, think of this as your therapy database of CFPB overreach. Also feel free to share it with your team so they can help provide detailed information about the harm CFPB regulations are causing your members.
*Examples (the more detail the better).
"We stopped offering remittances because the rule was too complicated, the risk and liability too high, and the cost was too high for membership. Cost per transaction went up $15 per, because 6 employees needed to be involved per transaction (not counting compliance and risk officers) and the time to process a transaction increased by 45 minutes. The rule priced our product, previously $25.95, up as high as $45.50 and thus priced out of the market. The fear of being sued over a difference of less than $1 has made us too vulnerable."
"Before the TRID rule, escrow to closing for typical mortgages was 30-35 days. Today it is 60-70 days. Our members routinely complain about the delay, as they now find themselves in between homes as one closed before completing the sale on the new purchase loan. In one instance, an electrician moved his family into a short-term residential hotel because the closing didnâ€™t overlap properly. This is all because of the TRID rule. This working class family incurred additional expense. The credit union was also forced for raise our closing fee by 12-15% to comply with the new rule."
"Our assessment of the proposed payday lending rule, prices us out of the market. First our all in costs to our members are $20 application fee, plus APY of 18%. We do not exceed 18%, however under the proposed CFPB rule, combined with the NCUA payday alternative loan rule, our CU will be priced out of the market and we are planning now to terminate the product. I have several members who have begged us to keep the product going."
"To ensure our payday alternative loans plan would be in compliance, we have hired an auditor at a cost of $3,000 a month to ensure we never fall out of compliance. Our examiner has noted we can and should increase our fee to offset the cost, but we hold back as a service to our member."