CFPB Seeks Comments on ‘Junk’ Fees; Trades Call Effort Misguided

The Consumer Financial Protection Bureau on Wednesday announced it will seek to limit “junk fees” that financial institutions, including credit unions, charge consumers for such services as online or telephone loan payments.

Financial services trade groups, including the Credit Union National Association, the National Association of Federally-Insured Credit Unions and banking trade groups immediately denounced the effort as a “misguided effort that paints a distorted and misleading picture of our country’s highly competitive financial services marketplace.”

CU Trades: CFPB Plan Would Distort View of CU Lending

Credit union trade groups are warning the Consumer Financial Protection Bureau that requiring a credit union to report data reflecting its lending to minority- and women-owned businesses would deliver a skewed view of the financial institution’s business.

Field of membership rules and a member business loan cap imposed by the National Credit Union Administration limit a credit union’s ability to lend money to all businesses, they said.

Watchdog Group Blasts CUNA for Contributions To ‘Sedition Caucus’

A government watchdog group is blasting the Credit Union National Association for continuing to support members of Congress who voted against certifying the Electoral College votes in the 2020 presidential election.

In a new report, Accountable.US said that during the first 11 months of 2021, CUNA contributed $188,500 to147 members of Congress who opposed certifying the election.

Republicans Trying to Stop SBA Direct Lending Plan

With the support of credit union and banking trade groups, Republicans on both sides of Capitol Hill are trying to prevent the Small Business Administration from making direct loans to businesses.

Sen. Tim Scott, (R-S.C.) this week introduced legislation that would prohibit the SBA from bypassing credit unions and banks and make loans directly. Senate Banking Committee ranking Republican Sen. Pat Toomey of Pennsylvania is a cosponsor of the bill.

Bankers Launch Anti-Credit Union Social Media Campaign

Isaac Newton said that for every action, there is an equal and opposite reaction.

That’s certainly the case in the perennial feud between the banking and credit union industries.

A week after the National Association of Federally Insured Credit Unions launched a media campaign calling the banks “bullies,” the community bankers have fired back

The Independent Community Bankers of America has announced it will launch a social media campaign urging Congress to take a close look at the credit union industry. A video released by the ICBA first discusses the virtues of community banks, before noting that credit unions were created to serve people of modest means.