COLUMBUS, Ohio (1/13/12)--Credit Union National Association (CUNA) President/CEO Bill Cheney will meet later this month with the nation's newly appointed Consumer Financial Protection Bureau (CFPB) director, Richard Cordray. Director Cordray reached out to CUNA's Cheney following his appointment.
CFPB also has reached out to CUNA to help arrange a meeting with credit unions in Alabama in conjunction with a field hearing on payday lending, Dunn told News Now. CFPB asked CUNA to have a credit union person at the hearing to discuss how credit unions are good alternatives to high fee pay day lenders.
The Ohio Credit Union League also will meet with Cordray, who hails from the state.
Cordray, who was appointed Jan. 5 by President Barack Obama in a recess appointment, is the former attorney general and treasurer of Ohio. He was serving at the time of his appointment as the agency's enforcement chief (News Now Jan. 5).
The appointment "is positive news for credit unions, as Cordray and CFPB staff have been strong supporters and highly accessible since the agency was created in 2010," said Paul Mercer, president of the Ohio league (eLumination Newsletter Jan. 11). "The action means CFPB will be able to assume regulatory authority over financial entities, like payday lenders and check cashers, not currently subject to federal regulation," Mercer added.
The league has a long-standing relationship with Cordray, dating back to his days in the state's administrative branch. Two days after his appointment, Cordray called league General Counsel John Kozlowski to thank credit unions for their support. He noted he looked forward to working with the movement.
CUNA and the league, which met earlier with the appointee "will meet with Cordray again shortly to reinforce that credit unions are consumer-owned cooperatives and need meaningful regulatory relief, not new regulations, in order to protect consumers," said CUNA and the league (News Now Jan. 5). They said they would "continue to consistently and aggressively press for regulatory relief to allow credit unions to continue their critically important role as consumer advocates and champions."
Now that the agency has a director, the agency can move forward with its Consumer Advisory Board, which will consult on key issues and some regulations, including remittances, that were stalled, the league said.
CUNA has emphasized to Cordray and other CFPB staff that the agency must consider ways in which the bureau can help minimize regulatory requirements for credit unions and other financial institutions. CUNA's Deputy General Counsel Mary Dunn will join the meeting with Director Cordray.