Minimize the impact of potential upcoming legislation

Mar 9, 2021 | Articles

By Joel Schwartz
If you read my last article on the legislation landscape for credit unions in 2021, you might not be feeling very optimistic. I can’t say I blame you. The current landscape isn’t bright.

The Consumer Financial Protection Bureau (CFPB), the White House and Congress are now very favorable to consumer protection. That means it is highly likely that consumer protection-oriented legislation that Democrats have already proposed in Congress may come back into play. In particular, the Stop Overdraft Profiteering Act (SOPA) of 2019 holds major implications for the banking industry as it proposes massive overhauls to current overdraft programs to make them more user-friendly.

With the right moves, credit unions and members can both win. Credit unions can minimize their operations impact while still maximizing consumer transparency. That way, this legislation truly helps credit unions further their mission to support their members.