The P.A.

A weekly address from Patrick Adams,
President of St. Louis Community Credit Union

Open Letter To CFPB Chief

On June 18th, 2012, posted in: Uncategorized by

Richard Cordray is a name with which you more than likely have no familiarity.  He is the head of the newly-formed, powerful government entity called the Consumer Financial Protection Bureau (CFPB).

Here’s a copy of my recent letter to Mr. Cordray.  I thought you might enjoy. 

Dear Mr. Cordray: 

Congratulations on your appointment to the position of director of the CFPB.  We appreciate your service in the protection of consumers.  We share in your desire to ensure that consumers are the benefactors of fair and just financial services.

In a recent guest opinion that you penned for a national credit union publication, you intimated your desire to not overburden the smaller credit unions with new compliance.  Thank you and I would further ask that you not hamstring those of us who faithfully, without pretense, serve the low/moderate income populations, the underserved populations, and the unbanked and under banked populations.  St. Louis Community Credit Union, as an example, regularly reaches deep into the community with financial services to prop up the disenfranchised who otherwise might be using alternative financial services, the fringe banking element or, worse yet, loan sharks.

Not-for-profit credit unions that carry the designation of Community Development Financial Institution (CDFI) are by their very nature chartered to reach targeted populations in greater need.  St. Louis Community Credit Union is one of such credit unions serving the city of St. Louis.  While a deep satisfaction and reward comes with making our community a better place, we are also burdened with higher credit risk, smaller balances and increased transactions all of which manifest themselves in a much greater operating expense inherent to serving this community.  Increased compliance costs would only serve to diminish the quality and quantity of services we currently offer our members.

We attempt every day to stay out of our members’ pockets with new or increased fees.  We attempt to pay more on dividends and charge less on loans.  SLCCU has been successful in our charge.  In order that we can continue to increase our members’ standard of living and better their lifestyle, we ask for your consideration in “carving out” CDFIs from the expensive weight of new compliance.

Thanks for all you do and we invite you to visit our credit union some time in your future and witness first-hand all the good we are doing.

Sincerely,

Patrick K. Adams
President & CEO
St. Louis Community Credit Union

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