National Credit Union Administration (NCUA) Chairman Michael E. Fryzel announced that he will propose the creation of an NCUA Consumer Protection Office in the 2010 Agency Budget.

“The new office will consolidate existing consumer protection functions already administered by NCUA and would create a liaison relationship with relevant external parties, such as the Consumer Financial Protection Agency (CFPA), if that proposed entity becomes a reality,” stated Chairman Fryzel. “While NCUA has always placed a high priority on the enforcement of consumer regulations, and credit unions themselves have a strong track record of pro-consumer conduct, it is important that the highest level of compliance with these essential laws be maintained at all times. The creation of a dedicated Consumer Protection Office will make NCUA supervision of consumer protections even more efficient and effective, and will further underscore the priority of this function."

President Obama, in the recently released Financial Regulatory Reform proposal, called for the creation of the CFPA to protect consumers and investors from financial abuses. The proposed CFPA would have broad jurisdiction regarding credit, savings and payment products.

NCUA is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.