Banking and Finance Law Daily Wrap Up, OVERSIGHT AND INVESTIGATION—Defense credit unions call for more consumer protections ahead of Congressional hearings, (Jul 14, 2026)

By Carrie DeLeon

The DCUC has asked Congressional committee members to prioritize issues important to military families.

As the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services prepare to conduct oversight hearings of the Federal Reserve and the Consumer Financial Protection Bureau, the Defense Credit Union Council (DCUC) is urging lawmakers to take into consideration the “unique financial needs” of its military members and highlighted the need to expand consumer protection and fraud prevention.

“Defense credit unions support strong action against fraud, financial exploitation, abusive practices, and other demonstrable harm. At the same time, policymakers must avoid duplicative supervision and one-size-fits-all mandates that divert resources away from affordable lending, cybersecurity, financial counseling, fraud prevention, and direct service to military communities. DCUC is asking Congress to advance a regulatory framework that targets bad actors, coordinates with the NCUA, restores a formal credit union voice at the CFPB, and preserves access to responsible financial products,” said Jason Stverak, DCUC chief advocacy officer.

Letters were submitted this week by the DCUC to House and Senate leaders ahead of congressional hearings on the CFPB’s semi-annual report and the Federal Reserve’s semi-annual monetary policy report. DCUC said it supports reforms that would “strengthen congressional oversight, improve transparency in rulemaking and enforcement, clarify legal standards, require stronger economic analysis, and ensure that regulations are tailored to the size, structure, and risk profile of credit unions.”

Letters regarding review of the CFPB ask committee members to support the restoration of the CFPB’s Credit Union Advisory Council or the creation of a permanent advisory body. DCUC said that a formal credit union advisory body would “help the Bureau identify unintended consequences before they reduce access to responsible financial products, particularly for servicemembers, veterans, rural communities, minority depository institutions, CDFI-certified credit unions, and other community-based institutions.”

DCUC also called on the CFPB review its rules and processes that would be simplified, tailored, or eliminated for not-for-profit credit unions. DPUC said the Bureau should provide “clear rules rather than relying on enforcement actions or supervisory findings to announce new obligations, recognize good-faith compliance efforts, remove subjective ‘reputational risk’ concepts from supervisory materials, and provide practical compliance resources for smaller institutions.”

Regarding the Federal Reserve, DCUC is calling for continued discussion about efforts to modernize the nation’s payment infrastructure. The Council said it supports continued investment in the expansion of FedNow, payment fraud mitigation initiatives, ISO 20022 implementation, and payment security enhancements. Congress should also consider how Fed policies can ensure that smaller financial institutions such as defense credit unions can “maintain equitable access to payment innovations without imposing disproportionate compliance or operational costs,” DPUC said.

In addition, the committees should “continue evaluating the economic effects of inflation and interest rate policy on consumers, military families, and community lenders.”

“While reducing inflation remains essential, prolonged periods of elevated interest rates increase borrowing costs, reduce mortgage affordability, slow small business formation, and place additional financial pressure on military households already facing unique financial challenges,” the Council added.

Companies: Defense Credit Union Council

LegislativeActivity: CFPB FederalReserveSystem FinancialStability OversightInvestigations