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CFPB Threatens the Credit Union Business Model

The agency's potential pursuit of credit unions for UDAAP violations is a legitimate concern.

By Marvin Umholtz | Updated on July 28, 2015

Despite her over-sized vendetta against “snot nosed millennial” bureaucrats over at the CFPB, Executive Editor Heather Anderson’s insight into one of the CFPB’s biggest flaws, and its most dangerous authorities – UDAAP – is very well founded. With the blanket authority to declare any financial product or service to be “abusive,” the highly-partisan, and ideologically-driven CFPB Director Richard Cordray has the unprecedented ability to distort the marketplace, and to arbitrarily punish political adversaries. Ms. Anderson’s concluding warning is as true, as it is chilling – the CFPB could pursue credit unions for violations of UDAAP based upon commonplace lending and collection practices.

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