CFPB unveils payday proposal, CUNA analyzing CU impact
CUNA is analyzing the Consumer Financial Protection Bureau’s (CFPB) short-term, small-dollar loan proposal, released at midnight Thursday, for potential effects on credit unions.
CUNA President/CEO Jim Nussle said he hopes the proposal will not add additional regulatory burdens to credit unions offering such loans.
“Credit unions exist to meet needs of their members. Credit unions are proud of how they have engaged their members with short-term, small-dollar lending needs," he said. "We believe that any rulemaking in this area should encourage credit union participation in this market, not impede it. In response to CUNA’s advocacy efforts, the CFPB has indicated that it aims not to include credit unions products in this proposed rule.
"We are closely analyzing the 1,549-page proposal and we will strongly advocate that CFPB re-evaluate any aspects of its proposal that impact credit union’s ability to serve their members," Nussle added.
CUNA has asked CFPB to provide a briefing for CUNA members on the proposal. CUNA will develop its comments on the proposal with its Consumer Protection Subcommittee, led by Bill Cheney, president/CEO of SchoolsFirst FCU, Santa Ana, Calif., and its Advocacy Committee, led by Patrick Jury, president/CEO of the Iowa Credit Union League.
“This is a complicated proposed rule, and it will take some time for all affected parties to discern the proposal’s implications,” said CUNA Chief Advocacy Officer Ryan Donovan. “We would rather be right in our analysis than first with an analysis.”
Watch News Now and CUNA’s Removing Barriers Blog in the coming days for additional analysis.