Credit union trades urged the CFPB to delay and make changes to its proposed rule that would require financial institutions – including credit unions – to provide transaction data and other information concerning a consumer financial product or service upon request. The proposed rule is the bureau’s effort to implement section 1033 of the Dodd-Frank Act.
The comment letter was jointly submitted by CUNA and NAFCU Friday in advance of the organizations’ legal formation of America’s Credit Unions. In the letter, the trades noted the proposed rule “goes far beyond any reasonable interpretation” of section 1033, while placing high costs, challenging requirements, rapid timeframes, and more on credit unions. They also flagged the lack of focus on stakeholder concerns.
The trades recommended multiple changes to the proposal, including that the CFPB provide tiered relief for covered providers, provide longer compliance timeframes, and recognize a qualified industry standard for data exchange.
The trades concluded by reiterating the disproportionate impact the rule will have on small institutions and urging the bureau to “pause this rulemaking and consider substantial changes to the proposal.”