Consumer-friendly credit union products should not be detrimentally impacted by the Consumer Financial Protection Bureau’s (CFPB) proposed short-term, small-dollar rule, CUNA wrote to the bureau Friday. CUNA responded to a bureau Request for Information on other loan products and practices not covered by the rule.
“Consumer friendly credit union products that fall outside of the scope of what is considered a covered loan could still be impacted if credit unions are swept into the proposed rule,” the letter reads. “Many small dollar loans, and other credit union products and services such as automobile refinance loans, will not be directly impacted in every situation by the proposed rule. However, all credit union lending is affected because of the overly broad scope of this rule.”
CUNA also noted:
CUNA also cited recent recommendations by other agencies and regulators that have concerns about the proposed rule:
CUNA also weighed in on the negative effects of other CFPB rulemakings and actions, including;
See CUNA's Removing Barriers Blog for a deeper look into CUNA's concerns.