CUDA stated the current purpose of credit unions, and how the growing cost to serve, driven by increased regulatory related costs could prove detrimental to the system. The contradiction of all the stricter governance rules and new functions such as Risk, Compliance, Internal Audit, new F&P requirements, to name but a few, when we are permitted to do less business now than before these new requirements came in. Limits are so restrictive that we have situations where some credit unions are refusing good people good loans. Something has to change, we still hope that will come with enriched regulations following CP125 and other lenders who are creative in avoiding regulatory burdens, which may not be serving to protect the consumer. If their approach is not impacting on the consumer then perhaps such flexibility could be available to credit unions. We really need the alignment of credit unions evolving their business with proper regulatory requirements and limits.
