In a speech on September 10, 2019, NCUA Board Member Todd M. Harper gave his opinion regarding consumer financial protection, and the need for improved examinations and enforcement. He stated:
Since returning to the NCUA as a Board Member, I have spent some time exploring how the agency conducts consumer financial protection compliance reviews. My interest in this issue was sparked by news stories concerning lapses in consumer financial protection by individual credit unions during the last several years.
In general, I have found that the NCUA’s current method for examining and enforcing consumer financial protection laws and regulations in credit unions with less than $10 billion in assets that it supervises is not comparable to our sister agencies, which complete regularly scheduled risk-focused consumer compliance reviews and assign a separate consumer compliance rating outside of the CAMEL process.
NCUA’s different approach to consumer financial protection reviews runs counter to the congressionally mandated mission of the Federal Financial Institutions Examination Council, which works to “prescribe uniform principles, standards, and report forms” across all types of financial institutions.
He continues:
Although credit unions are owned by their members, management’s actions may not always align with the consumers’ best interests and the requirements of federal regulations. That’s why I believe that the NCUA Board should work to ensure greater consistency in supervising consumer financial protection matters. In doing so, we will better safeguard member interests; especially as credit unions grow in size, scale, and scope.
Credit unions should take this as a sign of things to come. Are you ready for the increased focus on regulatory compliance? We can help. Compliance Services Group’s audits are based on consumer protection regulations. We provide consulting to help all financial institutions prepare for increased regulatory and consumer protection focuses.
Compliance Services Group, LLC is now scheduling audits and reviews for 2020! Please contact Kris Bullinger (360) 943-7137 x 107 or Kris.Bullinger@ComplianceServicesGroup.com to reserve your dates. For more information on our audits and reviews, see our Audit Services page.
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