Credit unions press lawmakers for regulatory relief

Credit unions are pressing lawmakers to provide wide-ranging relief from new regulations they argue are threatening their ability to stay in business.

The National Association of Federal Credit Unions (NAFCU) wrote a letter to top Senate and House committee leaders on Tuesday seeking changes to the rules authorized by the Dodd-Frank financial reform law.


"Credit unions are well-managed, well-run institutions that did not engage in the practices that led to the financial crisis," said Fred Becker, NAFCU president and CEO. "Yet, the regulatory burden on our nation’s credit unions has reached epic proportions and that must be addressed immediately."

NAFCU says there are 700 fewer credit unions than there were before Dodd-Frank was enacted in July 2010.

Credit unions have been in talks with congressional leaders and regulators to determine what changes should be made to lift some of the regulatory weight.

NAFCU made specific recommendations in the letter to congressional leaders, including providing the National Credit Union Administration (NCUA) with the authority to delay implementation of rules from the Consumer Financial Protection Board (CFPB) so that they can be tailored to credit unions.

The group again urged lawmakers to raise the cap on member business loans to 27.5 percent of total assets, a long-standing goal that would increase the amount of lending that credit unions can engage in.

NAFCU said red tape is also hurting their members and urged Congress to scrap requirements for redundant privacy notices on annual statements. Credit unions need greater authority and flexibility in how they invest and establish national standards for safekeeping of all financial information, NAFCU said.

If the case of a data breach, credit unions want to hold merchants responsible, especially when it’s due to their own negligence, NAFCU said.

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