WASHINGTON — The Defense Credit Union Council (DCUC) is urging the Senate Banking Committee to press Consumer Financial Protection Bureau director nominee Brian Johnson on his approach to consumer protection, regulatory oversight and the unique role of credit unions during his confirmation hearing scheduled for July 23.
In a letter to the Senate Committee on Banking, Housing, and Urban Affairs, DCUC said it supports a balanced regulatory framework that promotes consumer protection while providing regulatory certainty and oversight tailored to member-owned, not-for-profit credit unions. The organization said its recommendations are intended to ensure credit unions can continue serving military communities and other consumers while maintaining accountability.
DCUC said it welcomes Johnson’s background in consumer financial policy but encouraged lawmakers to examine how he would balance consumer protections with recognition of the cooperative structure and mission of credit unions.
‘Not Competing Priorities’
“Consumer protection and regulatory accountability are not competing priorities; they are complementary ones,” Jason Stverak, DCUC’s chief advocacy officer, said in a statement attributed to the organization.
According to DCUC, the next CFPB director should focus enforcement efforts on demonstrable consumer harm, provide clear and consistent regulatory expectations, and ensure credit unions remain able to offer affordable financial services to servicemembers, veterans, military families and other communities.
Among the priorities outlined in the organization’s letter are:
- A risk-based supervisory approach centered on demonstrable consumer harm.
- Greater regulatory transparency, accountability and certainty.
- Oversight tailored to the not-for-profit structure of credit unions.
- Increased coordination with the National Credit Union Administration to reduce duplicative examinations.
- Continued investment in the CFPB’s Office of Servicemember Affairs and stronger protections against fraud targeting military consumers.
- Responsible oversight of emerging technologies, including artificial intelligence, open banking and data security, while preserving access to affordable credit.
‘Beyond Compliance’
“The CFPB’s decisions extend far beyond regulatory compliance,” Anthony Hernandez, DCUC president and CEO and a retired U.S. Air Force colonel, said in the organization’s statement. “They influence the availability of affordable financial services, the pace of innovation across the financial sector, and the ability of credit unions to continue investing in the financial readiness of military communities. Effective regulation should protect consumers without limiting the institutions that are helping them build long-term financial security.”
DCUC said defense credit unions serve millions of active-duty servicemembers, veterans, military families and civilian members worldwide. The organization argued that a transparent and predictable regulatory framework would help preserve consumer choice, encourage innovation and enable financial institutions to address evolving economic and national security challenges.
In addition to its letter, DCUC said it submitted a series of questions for the record asking Johnson to address issues including regulatory accountability, military consumer protections, fraud prevention, emerging financial technologies and collaboration with the credit union industry.
