Congress to Cordray: Dodd-Frank Not Intended for Credit Unions, Community Banks

Twelve Northwest Congressional Representatives are among those who signed the letter, which circulated as 5,000 credit union advocates met with their elected representatives during CUNA’s Governmental Affairs Conference in Washington, D.C. last month.

“We write to express our concern,” the letter states, “that the approach taken by the Consumer Financial Protection Bureau (CFPB)—which does not routinely distinguish credit unions and community banks from some of the very large financial institutions and nonbank lenders—may unintentionally burden community based financial institutions and limit the choice and availability of consumer credit. “

Northwest Representatives signing the letter include:

  • Suzanne Bonamici ( D-OR 1)
  • Kurt Schrader (D-OR 5)
  • Peter DeFazio (D-OR 4)
  • Greg Walden (R-OR 2)
  • Earl Blumenaur (D-OR 3)
  • Suzan Delbene (D-WA 1)
  • Rick Larsen (D-WA 2)
  • Jaime Herrera Beutler (R-WA 3)
  • Dan Newhouse (R-WA 4)
  • Derek Kilmer (D-WA 6)
  • Dave Reichert (R- WA 8)
  • Cathy McMorris Rodgers (R-WA 5)

The letter cites a recent Government Accountability Office report on the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which found “a number of cases where financial services have been limited or discontinued by community based financial institutions due to new requirements.”

“We urge you to consider the benefits credit unions and community banks provide to their members and ensure that regulations do not have the unintended consequences of limiting services for increasing costs for credit union members or community bank customers,” the letter concludes.

Questions about this story? Contact Lynn Heider: 503.350.2225, lheider@nwcua.org.

Posted in Advocacy News.