MnCUN Joins 17 Credit Union Associations in Defense Against CFPB’s Harmful Overdraft Rule

​Today, the Minnesota Credit Union Network (MnCUN) joined 17 credit union leagues and associations in filing an amicus brief in support of America’s Credit Unions’ recent federal lawsuit challenging the Consumer Financial Protection Bureau’s (CFPB) final rule that sets a fee cap on overdraft protection programs. Collectively, leagues and associations that filed the amicus brief represent 3,237 credit unions and 105,000,000 credit union members.

The amicus brief highlights the significance of credit unions’ unique member-owner relationship that is fundamental to their mission of serving their communities. The CFPB’s final rule focuses on calculating costs and assessing fees, failing to account for credit unions’ unique capital and operational realities. The final rule was developed with data from five financial institutions that does not represent the diversity of the financial services industry.

“Many consumers chose overdraft protections as a financial service and credit unions are providing that option transparently in response to the needs of their members. Existing regulations ensure overdraft protection products do not cause unnecessary consumer harm," said MnCUN President and CEO Mara Humphrey. “The CFPB’s finalized rule disregards decades of precedent set by the Federal Reserve Board and they have overstepped their statutory authority by classifying overdraft services as credit under the Truth in Lending Act, completely failing to consider the broader economic and operational impacts of the rule. Ultimately, the rule threatens to reduce access to financial services in rural areas and underserved communities which directly goes against the mission of credit unions.”

Contact MnCUN Chief Advocacy Officer Ryan Smith with questions.