National Association of Federal Credit Unions statement on Consumer Financial Protection Bureau’s payday lending proposal
WASHINGTON, DC (October 7, 2016) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement regarding the Consumer Financial Protection Bureau’s payday lending proposal in conjunction with the submission of its comment letter to the bureau.
“The CFPB’s payday lending proposal would severely hamper credit unions’ ability to continue offering responsible products such as PAL loans and must be withdrawn,” said Berger. “NAFCU supports unregulated entities being regulated in this area, but credit unions’ prudential regulator, the National Credit Union Administration (NCUA), already established short-term, small dollar loan regulations.”
“NAFCU joins with the majority of the members of Congress and reemphasizes its call for the bureau to use its Dodd-Frank authority to entirely exempt credit unions from this rule. Consumers need more of the responsible loans that credit unions provide; unfortunately, without a credit union exemption, this rule will likely deprive members who need these loans the most.”
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.