WASHINGTON–The Defense Credit Union Council is calling on Treasury to reverse a decision related to financial literacy programs and pitching an idea for a public/private partnership.
As the CU Daily reported here, the CFPB has published a proposed rule that seeks to rescind its authority to use money from the Civil Penalty Fund for consumer education and financial literacy initiatives.
In a letter to acting CFPB Director Russell T. Vought, the CFPB outlined what it called a offering a “path forward” to preserve and strengthen financial literacy programs for servicemembers, veterans, and their families.
“In light of the Bureau’s recent decision to curtail the use of civil penalty funds for consumer education…we believe this moment calls for a creative, mission-driven solution,” said DCUC President and CEO Anthony Hernandez in a statement. “DCUC proposes a public-private partnership with the CFPB to leverage the trusted and proven expertise of defense credit unions in delivering financial education where it is needed most: on bases, in VA facilities, and military communities across the country.”
What Partnership Would Do
In its letter, DCUC said the partnership would:
- Leverage existing credit union infrastructure to deliver on-base and virtual financial literacy programming at no cost to taxpayers
- Collaborate on military-specific education materials aligned with CFPB’s goals and guidance
- Pilot innovative delivery models—especially through digital tools—to reach younger servicemembers and those stationed abroad
- Share impact metrics, insights, and best practices to continuously improve financial readiness outcomes.
Not Extensively Used
As the CU Daily also reported, the CFPB has not used its discretionary authority extensively, allocating $28.8 million for consumer education since its inception, compared to $3.6 billion it has disbursed to harmed consumers.
The move follows an April 2025 internal memorandum by Chief Legal Officer Mark Paoletta who stated the Bureau “will focus on redressing tangible harm by getting money back directly to consumers, rather than imposing penalties on companies in order to simply fill the Bureau’s penalty fund.”
Appearance Before NACUSAC
Separately, Hernandez addressed the National Association of Credit Union Supervisory & Auditing Committees (NACUSAC) during its conference in Charleston, S.C.
According to DCUC, Hernandez provided timely advocacy updates and industry insights, emphasizing the importance of collaboration among national trade associations as credit unions navigate today’s complex and rapidly changing environment.
He also spoke on strategic leadership in turbulent times, sharing how DCUC is helping lead the industry through uncertainty. He encouraged leaders to build strong planning processes by:
- Identifying early warning signs and strategic “trigger points”
- Anticipating extreme but plausible scenarios
- Running small experiments before making large-scale commitments
- Creating action frameworks to respond to emerging risks
‘Always Signs’
“There are always signs—indications of what may be ahead. It’s the responsibility of leaders to imagine and prepare for a wide range of possible futures,” said Hernandez. “Strategic foresight allows organizations not just to survive the storm, but to find the silver linings that offer a competitive edge.”
