It’s time to engage the advocacy power of the credit union industry once again, as the CFPB recently issued a proposed rule that would require financial institutions to collect and report data on the credit applications of small businesses. The Bureau’s rulemaking is required to implement changes to the Equal Credit Opportunity Act (ECOA) made by Section 1071 of the Dodd-Frank Act, and the intent of the proposed data collection is to facilitate enforcement of fair lending laws and to enable the identification of business and community development needs and opportunities.
Some of the provisions that would affect credit unions include:
Once again, these proposed changes would result in extensive and recurring costs for credit unions to comply with these new rules. I urge you to share your voice with the CFPB to oppose this burdensome rule. Expanded regulations will only create more challenges for credit unions trying to provide financial services to those that need them most, and the CFPB needs to hear from credit unions on this matter!
You can weigh in quickly and efficiently using the CUNA Grassroots Action Center.
As always, don’t hesitate to contact me with any advocacy questions or concerns.
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