CCUA Leads National Effort to Challenge CFPB’s Overdraft Rule
For Immediate Release
Tuesday, January 8, 2025
Washington, D.C. (January 8, 2025): Today, 18 credit union leagues and associations filed an amicus brief in support of America’s Credit Unions’ federal lawsuit challenging the Consumer Financial Protection Bureau’s (CFPB) final rule on overdraft protection fee caps. The CCUA played a pivotal role in initiating the legal response, working early with other leagues to craft the amicus brief. This leadership highlights CCUA’s commitment to defending credit union members and ensuring access to affordable financial services for communities nationwide. This collaborative achievement reflects the dedication of leagues and associations representing 3,237 credit unions and over 105 million members.
“The Cooperative Credit Union Association is proud to have led this critical effort alongside our peers,” said Ron McLean, President/CEO of CCUA. “Credit unions are built on the foundation of empowering their members with fair and transparent financial services. This rule not only disregards that mission but threatens the accessibility and affordability that credit unions strive to provide.”
The amicus brief emphasizes the critical member-owner relationship that defines credit unions and critiques the CFPB’s reliance on data from just five financial institutions, which fails to reflect the diversity and operational realities of credit unions. The finalized rule disregards decades of precedent set by the Federal Reserve Board and oversteps statutory authority by classifying overdraft services as credit under the Truth in Lending Act (TILA).
“The CFPB’s rule is a one-size-fits-all approach that doesn’t take into account the unique structure and purpose of credit unions,” McLean continued. “It undermines the ability of credit unions to serve their members, particularly in rural and underserved communities where financial inclusion is most needed.”
Current regulatory frameworks already ensure that overdraft protection services are reasonable, transparent, and fully disclosed, allowing members to make informed financial decisions without unnecessary burdens.
The 18 state credit union leagues/associations represented by the amicus brief include:
- California Credit Union League
- Carolinas Credit Union League
- Cooperative Credit Union Association
- Cornerstone League
- Illinois Credit Union League
- Kentucky’s Credit Unions
- Luminate Louisiana Credit Unions
- Michigan Credit Union League
- Minnesota Credit Union Network
- Mississippi Credit Union Association
- Nebraska Credit Union League
- Nevada Credit Union League
- New York Credit Union Association
- Ohio Credit Union League
- Tennessee Credit Union League
- The League of Credit Unions & Affiliates
- Utah’s Credit Unions
- The Wisconsin Credit Union League
This collaborative effort underscores CCUA’s and the credit union movement’s shared dedication to advocating for policies that support financial wellbeing, inclusion, and consumer protection.
About the Cooperative Credit Union Association
About the Cooperative Credit Union Association: The Cooperative Credit Union Association (CCUA) is the leading regional trade organization, acting as the advocate for nearly 200 credit unions spanning Delaware, Massachusetts, New Hampshire, and Rhode Island. These member credit unions collectively manage assets exceeding $75 billion, serving a combined membership of over 4.8 million consumers. Visit www.ccua.org for more information.
Media Contact
Janelle Mullen
Vice President of Member Engagement
Email: jmullen@ccua.org
