“Instead of money being used to make loans to hardworking people and businesses in our communities, it is being spent on consultants, lawyers and auditors,” he said.

Templeton said compliance challenges not only come from the Dodd-Frank Act and the Consumer Financial Protection Bureau, but also the NCUA.

Templeton also testified that his credit union has seen its debit card interchange rate drop by almost two cents per transaction since its enactment. And, to comply with the new routing requirements, SRP had to re-issue hundreds of plastic cards at a cost of more than $2 per card.

Terry West, president/CEO of the $4.7 billion VyStar Credit Union, also shared how his Jacksonville, Fla.-based credit union is adjusting to new regulations on remittances.

“We currently originate about 140-160 international wire transfers a month,” he said. “We will need to revise forms to incorporate the receipt requirements. We will need to put into place the specific error resolution process required by the regulation, and conduct staff training. Obviously, staff in several departments is thoroughly analyzing what needs to be changed.”

The CFPB proposed a definition that would say any credit union that makes 25 or fewer international remittances a year would not be considered a “remittance transfer provider.” Credit unions were surprised at the very low number proposed, West said, which would only help a very, very small number of institutions.

“A major part of VyStar's membership is military personnel, civil service personnel and their family members who will want to initiate international wire transfers from their accounts. A credit union can be very small and serve, for instance, an immigrant population who will also want such a service,” he said.

Banking and credit union witnesses both expressed their support for H.R. 3461, the Financial Institutions Examination Fairness and Reform Act, sponsored by subcommittee Chairman Shelley Moore Capito (R-W.Va.) and Ranking Member Carolyn Maloney (D-N.Y.).