The Consumer Financial Protection Bureau (CFPB) announced Tuesday it intends to engage in a rulemaking process to reconsider its short-term, small-dollar loan rule. CUNA and credit unions saw a major victory when the rule was finalized last year, as many provisions that would have negatively impacted consumers’ ability to access short-term, small-dollar credit were not finalized.
“We greatly appreciate that the CFPB made many of CUNA’s suggested changes in its final rule for payday and small dollar lending,” said CUNA Chief Advocacy Officer Ryan Donovan. “We hope that if the CFPB makes any changes to its final rule it still addresses consumer abuse in this market, while considering a full exemption for credit unions, who have been recognized as the safest and most affordable providers in this market.”
The bureau finalized the rule in October 2017, and CUNA’s advocacy throughout the rulemaking process resulted in major improvements.
The rule as originally proposed swept in a number of credit unions short-term, small-dollar loan products, and other products such as auto refinance loans.