Cordray unveils plans for CU advisory council

The Consumer Financial Protection Bureau (CFPB) will establish an advisory council for credit unions to help the agency gauge how its actions are impacting the credit union industry, CFPB Director Richard Cordray said during a Tuesday House Oversight and Government Reform subcommittee hearing.

Cordray, who was the sole witness at the hearing, noted that he created similar advisory councils for credit unions and community banks during his time as Treasurer of Ohio, and said those advisory groups improved his agency's work. He noted that credit union interests are "often aligned with those of consumers," and said that this type of business model, which emphasizes helping consumers, is the type of business model that the CFPB wants to encourage in the larger financial marketplace.

He added that the agency would bring the National Credit Union Administration and other financial agencies in to meet with the CFPB in the coming year to coordinate supervisory schedules, guidance, and regulations, and discuss areas where their jurisdiction can overlap or where duplication can be minimized.

Responding to a question from House Oversight and Government Reform subcommittee on TARP, financial services and bailouts of public and private programs chairman Patrick McHenry (R-N.C.), Cordray said the CFPB has been and would continue to be transparent as it undertakes regulatory issues, and said the agency has been clear on its agenda. The CFPB would consider outlining its upcoming regulatory agenda on its homepage or through other forms, Cordray added.

Cordray said his agency aims "to make consumer financial markets operate fairly in order to protect consumers, support honest businesses, and play a crucial role in helping to safeguard the overall economy" under his leadership. Leveling the playing field is important for credit unions and community banks, and for making the financial system itself work, Cordray added. Overall, Cordray said, the CFPB's intention is to "be mindful" of the differences between larger institutions and smaller institutions.

Credit Union National Association (CUNA) President/CEO Bill Cheney and CUNA Senior Vice President and Deputy General Counsel Mary Dunn are scheduled to meet with Cordray on Jan. 31.

For Cordray's prepared statement, click here. For the video of the hearing, click here.