Douglas Fecher, the president and CEO of the Wright-Pratt Credit Union, and other credit union representatives told House Oversight and Government Reform Committee members this week that the compliance burden associated with Dodd-Frank has negatively impacted the institutions.
“Credit unions face a crisis of creeping complexity with respect to regulatory burden,” Fecher said. “This burden will, in my opinion, have a negative impact on credit unions’ ability to extend credit to members at reasonable costs. It is not just one new law or revised regulation that challenges credit unions, but the cumulative effect of all regulatory changes.”
The National Association of Federal Credit Unions also petitioned the House committee to fully consider the possible effects of Dodd-Frank and Consumer Financial Protection Bureau regulations on credit unions.
“With no end in sight, the steady stream of mandated regulation coming from the Dodd-Frank Wall Street Reform and Consumer Protection Act, including those regulations expected from the CFPB, only adds to the existing compliance burden our nation’s credit unions already face from the National Credit Union Administration and various other agencies,” NAFCU said in a letter to the committee on Tuesday. “Many regulations may be well-intentioned to correct the abuses of some bad actors in the financial services arena, but for credit unions, they are often a solution in search of a problem.”