CUNA urges withdrawal of payday proposal, or credit union exemption

The Consumer Financial Protection Bureau’s (CFPB) proposed rule on short-term, small-dollar loans could rob consumers of safe and affordable alternatives to the predatory lenders in the market, CUNA wrote to the bureau Wednesday in its comment letter on the proposal.

In a 61-page letter to the CFPB, with an attached 21 legal support letter from the Dentons US LLP, CUNA urges the bureau to withdraw its proposal or exempt credit unions as a class due to the many consumer dangers in the proposed rule.

In lieu of that, CUNA asks the bureau to consider addressing the substantial shortcomings of the proposed rule with several recommendations outlined in its letter, and asks the CFPB to publish a revised proposal for public comment.

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