The Consumer Financial Protection Bureau Thursday announced a delay in the mandatory underwriting provisions for its short-term, small-dollar (payday) rule to Nov. 19, 2020. CUNA supported delaying those provisions in a comment letter sent to the CFPB in March but has also called for an implementation delay of the entire rule.
“We thank the CFPB for finalizing the delay in the effective date of certain provisions, as the additional time will provide credit unions opportunity to prepare as the CFPB continues to pursue further changes,” said Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer. “CUNA continues to urge the CFPB to further examine and revise the payday rule to avoid any negative effects on credit union small-dollar loan programs due to their history and mission of providing safe and affordable small-dollar credit, while still holding non-depository lenders with histories consumer abuse accountable.”
The provisions would have become effective Aug. 19 of this year.
The CFPB issued a separate proposal on the payday rule about rescinding completely the mandatory underwriting provisions. CUNA responded to that proposal as well, saying the rule fails to strike an appropriate balance between enhancing consumer protection and ensuring credit unions are able to continue serving their members.