Since the shutdown on Feb. 10, the CFPB has had two Acting Directors: Russell Vought (Feb. 7-Feb. 11) and Jonathan McKernan (Feb. 12-present). Vought officially ordered the shutdown and since then the CFPB’s homepage has displayed a “404 Page not found” with an image of a plug pulled out of the socket.
On the day of the shutdown last week, America’s Credit Unions Chief Advocacy Officer Carrie Hunt said, “Having this much uncertainty in the regulatory arena is certainly of concern to us … because clearly our members need to know the rules of the road as to how we’re going to operate moving forward.”
On Monday, CU Times asked credit union officials this question: How long can the shutdown go on before you become concerned about the lack of guidance coming out of the CFPB?
America’s Credit Unions SVP of Government Affairs Greg Mesack said, “That's a very good question and we're actually looking at that as well. You know, as much as we have obviously expressed our concerns with the CFPB over the years, there are some vital functions that the CFPB must perform that are critical to credit unions being able to do their jobs in serving everyday working Americans. And so we're asking a lot of those same questions.”
Mesack added there’s a growing worry about how long the shutdown could go on.
“You know, trying to figure out how long this is going to last and then what that impact means because there's a lot of day-to-day things that the CFPB does: Statutorily-required adjusting thresholds and issuing, like you said, 'guidance',” he said. “And so we're asking that very same question and we're trying to get some answers for our members so that we can interact with Congress, the administration to make sure that whatever they're looking to do with the CFPB, it still leaves an agency that will function to the point that credit unions can continue to serve their members and continue to do their jobs.”
As far as the vital functions that have remained paused, there are many.
According to the statutory requirements failing to be monitored as it concerns credit unions, there are five main areas with multiple regulatory issues involved underneath each one:
1. Consumer Compliance & Fair Lending (Regulation B - ECOA & UDAAP)
- The Equal Credit Opportunity Act (ECOA) ensures credit unions do not discriminate in lending practices.
- The Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) provision ensures fair treatment of members in financial products and services.
- CFPB enforces Regulation Z, which ensures clear disclosure of loan terms, fees and interest rates.
- Mortgage-related rules like Ability-to-Repay, Qualified Mortgage standards and Home Mortgage Disclosure Act (HMDA) requirements are heavily regulated.
- Governs electronic payments, including debit card transactions, ATM withdrawals and person-to-person transfers.
- Protects consumers from fraud, unauthorized transactions and billing errors.
- The Fair Debt Collection Practices Act (FDCPA) regulates how credit unions and third-party collectors handle debt collection.
- The Fair Credit Reporting Act (FCRA) ensures accuracy and fairness in credit reporting.
- The CFPB monitors overdraft programs, ensuring proper disclosures and compliance with opt-in rules.
- Recent initiatives have pushed for fee transparency and reductions on overdrafts, late fees and non-sufficient funds (NSF) charges.
Stverak added that DCUC hasn’t heard any movement on this particular issue yet.
Mesack broke down the situation as such: “So when we look at an agency that is currently frozen, at what point does it need to become unfrozen so it can carry out those statutory requirements? And so I was quite sincere when I say we're trying to look at all those different parts to see what might be missed if things don't get moving soon.”
For now, credit unions remain at least partially regulatory blind without a functioning CFPB.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
