WASHINGTON (3/18/14)--Payday loans will be the topic when the Consumer Financial Protection Bureau holds a field hearing in Nashville, Tenn., March 25.
The hearing is set to begin at 11 a.m. (CT) in the Nashville Public Library Auditorium and will feature remarks from CFPB Director Richard Cordray and testimony from consumer groups. Industry representatives and the general public will also have the opportunity to speak at the session.
The CFPB announced in November 2013 that it would accept complaints on payday lenders and later that month announce its first enforcement action against a payday lender.
The Credit Union National Association highlights credit unions as a consumer-friendly alternative to the high-cost payday loan industry. Around 20% of credit union members use payday lenders. A May 15 webinar from CUNA will examine why payday lending has increased in recent years and illustrate how to develop effective credit union loan alternatives to payday loans.
Credit unions often offer members alternatives to payday loans--short-term lines of credit with annualized interest rates generally capped at the usury ceiling, which has been currently determined by federal rules to be at 18%. National Credit Union Administration regulations can allow credit unions to charge an annualized interest rate 10 points above the ceiling--at 28%. Most credit unions that offer payday loan alternatives also limit fees, offer counseling and encourage members to open savings accounts.
To register to attend the hearing, and sign up for the CUNA webinar, use the resource links.