Legislation

Coats introduces bill to protect credit unions, banks from CFPB overreach

CFPB_LogoSen. Dan Coats (R-Ind.) introduced a bill on Thursday to give credit unions and community banks some relief from what he called “crippling financial regulations” enacted following the 2008 financial crisis.

Coats’ bill, supported by the Indiana Credit Union League and the Credit Union National Association, would modify how the CFPB requests information from financial institutions with less than $10 billion in assets. Under the proposed bill, the CFPB would be required to use publicly available information or seek the requested information from existing banking regulators.

Credit unions and community banks “did not cause the financial crisis, but they are being treated as if they did by federal bureaucrats,” Coats said in announcing the bill.

The bill would also allow financial institutions’ prudential regulators to deny any request for information from the CPFB and would allow only institution-specific information, rather than industry-wide information, to be requested by the CFPB.

“We appreciate and support Sen. Coats’ efforts to clarify that such reporting requirements need to flow instead through the reports that credit unions are already required to provide to their primary regulators,” John McKenzie, the president of the Indiana Credit Union League, said.

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