CU leagues, trade groups support delay in CFPB payday rule
The bureau is also reviewing the ability to repay provisions of the payday rule and is still seeking public comment.
As the CFPB rewrites portions of its payday lending rule, state credit union leagues and national trade groups are calling for a delay in implementation and a broad exemption for short-term loans made by credit unions.
“We fully support the fight against unscrupulous payday lenders and vehicle title lenders, and we will oppose changes that would allow them to continue preying on the poorest of Americans; however, the rule in its current form unfairly lumps in pro-consumer credit unions with predatory storefront payday and vehicle title lenders,” Paul Guttormsson, vice president of legal and compliance at the Wisconsin Credit Union League, wrote, in urging the agency to delay the mandatory underwriting provisions of the rule.
The CFPB has been seeking comment on a proposal to delay the mandatory underwriting provisions of the payday rule for an additional 15 months to November 19, 2020.
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