The Consumer Financial Protection Bureau (CFPB) published its final short-term, small-dollar loan rule in the Federal Register Friday, with an effective date of Jan. 16. The final rule is much-improved over the proposed rule, CUNA believes, and CUNA’s Final Rule Analysis of the rule is available with details.
Through CUNA, league, credit union and member advocacy, the CFPB heard credit union concerns over the rule and released a final rule that resulted in a big win for the credit union movement. Changes to the rule were also a major goal of CUNA’s Campaign for Common-Sense Regulation.
“We are pleased the CFPB heeded our recommendations concerning a full exemption for the NCUA Payday Alternative Loan (PAL) program and the many other changes that were made to accommodate consumer-friendly small dollar loan programs at credit unions, including a more common-sense approach to which loans are covered,” CUNA President/CEO Jim Nussle said when the rule was finalized.
CUNA also conducted meetings with the bureau outlining the same issues.