Legislative Update with Jay Kruse

May the 4th be with you! What Yoda and Star Wars can teach us about the current “atmosphere” at the CFPB! Plus, last call for Summit Silent Auction donations. 

May the 4th Be With You! by Jay Kruse, Chief Advocacy Officer

Cue the Jedi theme…Now is the time to walk out of the darkness and follow the light! A wise man once said, “Once you start down the dark path, forever will it dominate your destiny.” (Lil hint…it was Yoda.)

No, I’m not a Jedi, I’m just a simple man trying to make my way in the universe, but I do think Ol’ Yoda was a little off on his assessment. We all know a recovering banker or two who has left the dark side only to become a credit union master! But, I do think Yoda was on to something as his knowledge apparently spans galaxies.

A long time ago in a galaxy far, far away… (Washington DC) an all-powerful financial “Death Star” known as the CFPB was created to rule over the financial industry, given ultimate power and largely insulated from political accountability and internal checks and balances. Now don’t get me wrong, the concept of a Consumer Financial Protection Bureau (CFPB) sounds promising, but not under its current construction. The Death Star needs a 2022 remodel, in the form of a multi-member board of directors to lead the direction of such a far-reaching and powerful regulator.

In fact, current leadership’s recent actions are arguably counterproductive to the bureau’s mission of consumer protection. Specifically, CFPB Director Chopra’s comments regarding “junk fees” and credit report changes. Eliminating fees and removing items from a credit report will most definitely have unintended consequences that are not in a member or consumer’s best interest, but we will save that for another day.

Quite simply, the CFPB has missed many opportunities to leverage credit unions’ mission and consider industry feedback. Current and past leadership has not made it a priority to engage and hear the concerns of the entities subject to its rulemaking and supervision, and it shows.

However, during his testimony in front of the Senate Banking Committee, Director Chopra did state that the Bureau is working on engaging small entities that they don’t have much contact with, while larger banks and credit unions are able to engage the bureau as part of the examination process. I guess I’ll take Yoda’s advice on that one too: “Patience you must have my young Padawan.”

I truly believe a change in leadership from a single Director to a muti-person board would transform the CFPB from a Death Star like weapon of the Dark, into what it was originally intended to be, a tool for Good! “Rebellions are built on hope.”

Silent Auction Last Call
This is the last call for Summit Silent Auction prize donations before we head to Rapid City next week. No worries if you haven’t purchased your prize yet or plan to just bring it with you to the conference, that’s just fine! Just bring you prize donation with you to the registration booth, and I will take care of the rest.

The auction will benefit our Roger Heacock GAC-HTH Scholarship awarded to DakCU members that wish to attend the CUNA Governmental Affairs Conference (GAC) or the DakCU Legislative/Regulatory Hike the Hill (HTH).
To donate an item OR scope out all the items that have already been donated, just use your phone to scan the QR code below or visit this link: https://dakcu.cbo.io.  And, May the 4th (and Force) Be With You. Always.