Letters to CFPB, NCUA focus on payday lending concerns
CUNA continues to advocate for changes to the Consumer Financial Protection Bureau’s (CFPB) short-term, small-dollar loan proposals with separate letters sent to NCUA and CFPB Monday. The CFPB’s proposal would add restrictions on payday, title, and high-cost installment loans that meet certain requirements.
In the letter to NCUA Chair Rick Metsger, CUNA President/CEO Jim Nussle asks that the agency consider the full impact of the CFPB proposal on credit unions’ small-dollar lending programs.
“We are quite concerned that the Bureau’s proposal sweeps in and threatens the stability of these consumer-friendly products offered by credit unions. This action, in our view, is uncalled for given credit unions’ history of, and approach to providing short-term, small-dollar credit to their members,” Nussle wrote. “We have specific concerns that the proposal will discourage credit union participation in the NCUA’s Payday Alternative Loan (PAL) program because of the additional compliance and regulatory burdens it places on credit unions participating in it.”continue reading »