The Consumer Financial Protection Bureau released proposed rules making changes to its short-term, small-dollar lending rule Wednesday. CUNA has called on the CFPB to revise its rule to ensure credit unions are able to continue offering short-term, small-dollar lending options for members in need, and is currently analyzing the proposal.
“Credit unions are known for providing safe and affordable short-term, small-dollar loans designed to keep members away from predatory payday lenders and debt traps,” said CUNA Chief Advocacy Officer Ryan Donovan. “We support bureau efforts to revise this rule, and urge the bureau to ensure these changes do not inhibit credit unions participating in the short-term, small-dollar loan market.”
CUNA, in its letter sent to CFPB Director Kathy Kraninger in December, said it supports revisions to the rule that would create an express, broader exemption for credit union loan products. CUNA agrees with the bureau that payday lenders should be effectively regulated.
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