Thursday, October 13, 2016

Navy's Debt Collection Practices Is Why CUs Should Not Be Exempt from CFPB

News about Navy Federal Credit Union's improper debt collection practices makes the case that credit unions should not be carved out from the regulations and oversight of the Consumer Financial Protection Bureau (CFPB).

Credit union trade groups have argued that credit unions should be outside of the purview of the CFPB.

In justifying their exemption from the CFPB, credit union trade groups have contended that credit unions are customer friendly. They state that credit unions wear the "white hat" and are not the bad actors of the financial services industry.

For example, Dan Berger, CEO and president of the National Association of Federal Credit Unions, recently wrote that "[t]he relationship between the credit union and its member is based on fairness and responsible practices."

Oh really.

Do you consider Navy Federal Credit Union's improper debt collection practices as being customer friendly?

Is threatening members responsible practices?

Is deceiving members consistent with fairness?

Policymakers should resist the call from credit unions to be exempt from CFPB oversight and regulations.

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