WASHINGTON–The Defense Credit Union Council (DCUC) is calling on the CFPB to reinstate its Credit Union Advisory Council (CUAC), which was dissolved in April of this year alongside other similar specialty advisory councils.
The move came as the Trump administration has moved aggressively to eliminate the CFPB. It announced last week that it would not seek any new funding for the Bureau in the new year.
In a letter to the CFPB’s acting director, Russell Vought, DCUC President and CEO Tony Hernandez said, “I believe restoring the CUAC is vital for effective consumer financial protection and for informing government of credit union priorities.” He added that the CUAC has “historically provided a critical forum for credit unions to share their on-the-ground expertise with CFPB leadership.”
The elimination of the Council, Hernandez said, has removed an “essential channel for dialogue between credit unions and regulators. In the past, even when credit union input wasn’t always heeded, the existence of the CUAC ensured that policymakers heard directly from institutions that prioritize people over profit in their mission. Without this advisory council, an important communication bridge between credit unions and the government has been lost. Reinstating the CUAC would immediately restore that bridge, allowing credit union voices to be heard on critical consumer financial issues.”
Need for CU Voices
Hernandez told Vought there is a need for credit union input in policymaking, as the CU view is often underrepresented compared with for-profit banks.
“The CUAC was one important way to achieve balance – a direct line for credit unions to share how policies impact ordinary Americans, including military families, veterans, and others we serve,” the DCUC CEO said. “Removing the CUAC has closed a direct communication channel that is crucial, especially when many lawmakers are far more familiar with banks than with credit unions. Simply put, without a formal advisory council, policymakers risk overlooking the unique needs and differences of credit unions. We believe reinstating the CUAC will ensure our members’ voices are heard at all levels of government, and that credit union priorities are understood when consumer financial regulations are crafted.”
Hernandez said credit unions have a “proven commitment” to consumers—most recently demonstrated during the government shutdown—and that especially includes helping young servicemembers.
“A reinstated CUAC would allow us to share real-world data and examples like these directly with CFPB and administration officials,” Hernandez said. “This kind of input can lead to more nuanced, effective regulations that protect consumers while accounting for the cooperative, member-focused model of credit unions. In short, credit unions have been “a lifeline” to consumers in hard times, and those lessons learned should be shared with those crafting policy.”
Cost & Efficiency Concerns
Hernandez said DCUC understand the decision to dissolve the CUAC was part of a broader effort to trim the size of government, but said the costs of operating the CUAC are “minimal – especially relative to its benefits – and can be mitigated.”
“In fact, when the CFPB previously disbanded its advisory boards in 2018, members noted that they had been told the group’s size made meetings too expensive, yet no one asked whether members would cover their own expenses,” Hernandez said. “Credit union representatives are more than willing to pay for their travel and accommodations to attend meetings if that is an issue.”
In addition, Hernandez said DCUC is also prepared to help underwrite or defray administrative costs related to the CUAC.
Benefits of Reinstatement
Hernandez closed the letter by saying the benefits or reinstating the CU Advisory Council include:
- Better Policy Outcomes
- Enhanced Communication
- Cross-Government Insight
“Our sole interest is to open the lines of communication once again so that, as policies are developed, the unique insights of credit unions are at the table – before decisions are made,” Hernandez said. “As our DCUC team has emphasized, it was ‘unfortunate the council has been done away with,’ and we earnestly hope to keep the door open for communication with all levels of government on behalf of credit unions. Reinstating the CUAC would definitively keep that door open.”
