A controversial Consumer Financial Protection Bureau task force on consumer financial law released its final report the day before a hearing about its makeup was to be held in a federal court in Massachusetts. Credit unions will like its recommendation that all credit unions be allowed to serve underserved areas. Consumer groups will object to many of the other recommendations and it is unlikely the Biden Administration will accept them.
Acting Comptroller Brian Brooks of the Office of Comptroller of the Currency claims he can grant special charters to companies handling payments, without going through the traditional rulemaking regulatory process. Many financial trade groups disagree and note there are substantive issues involved in granting these charters.
Credit union trade groups this week accused Acting Comptroller of the Currency Brian Brooks of skirting the rulemaking process in an attempt to allow risky fintech companies to expand their services. “Credit unions are concerned that non-regulated companies are engaged in financial activities by offering products and services that are traditionally offered by credit unions and banks,” CUNA President/CEO Jim Nussle told the House Financial Services task force on financial technology. “These non-bank providers often strive to offer these products and services without being subject to robust consumer protection laws and regulations in place for banks and credit unions.” Nussle
Despite vehement opposition from much of the financial community, Acting Comptroller of the Currency, Scott Brooks, apparently is going ahead with his plan to issue narrow bank charters for activities such as payments.
The National Credit Union Administration granted its first new federal charter of the year to Growing Oaks Federal Credit Union in Goldsby, Oklahoma.
Acting Comptroller of the Currency, Scott Brooks is under fire for seeking feedback on a proposal to offer narrow-purpose bank charters for activities such as payments—a plan that has been blasted as serving special interests, including one that formerly employed him.
For the first time in more than 60 years, starting this week, credit unions in the nation’s capital may be chartered through the District of Columbia government.