Dear Members:
On December 5, 2017, long-time Federation member Lower East Side People's Federal Credit Union announced a suit against the Trump Administration for what it sees as actions intended to undermine the efficacy and independence of the Consumer Finance Protection Bureau (CFPB). The credit union cites damages done to New York consumers and communities by predatory lenders and abusive financial service providers. While the Federation is not a party to the suit, we have witnessed how predatory lenders undermine the economic security of communities served by community development credit unions, and have long advocated for a strong and independent CFPB that offers consumers consistent, durable protection.
Credit unions and their members benefit from a balanced marketplace that curbs abusive practices and increases transparency. To that end, the Federation will continue to work with CFPB leadership to:
- Fight to ensure that for-profit predatory lenders and non-regulated financial service providers are subject to equal supervision and accountability standards as regulated depository institutions.
- Support stepped-up enforcement of existing regulation, particularly in industries that currently lack oversight, including: payday lenders, auto title loan companies, mortgage finance companies and private, for-profit fintech firms pushing high-cost credit on consumers.
- Engage on new regulation to ensure that it does not place undue regulatory burden on small, community-owned and controlled financial institutions.
Cathie Mahon
President & CEO
National Federation of Community Development Credit Unions