CUNA asks CFPB for changes to payday, small-dollar rule

July 26, 2016

CUNA staff met with the Consumer Financial Protection Bureau (CFPB) Tuesday to address concerns about its proposed short-term, small-dollar loan rule. The CFPB issued the proposal in June, and CUNA has concerns that a number of consumer-friendly credit union products will be affected.

During the meeting, CUNA staff raised concerns about the fact that the CFPB’s proposal sweeps in consumer-friendly loans such as NCUA Payday Alternative Loans, small-dollar loans offered by state-chartered credit unions that vary in structure, and auto refinance loans.

CUNA has expressed support for curtailing predatory lending practices, and has asked the CFPB to more narrowly tailor its rule to focus on bad actors.

CUNA provided the CFPB with its analysis of the proposed rule and told the CFPB that it will be filing detailed comments in October. The CFPB recently extended the comment deadline on the proposal to Oct. 7, and credit union stakeholders can submit comments to CUNA by Sept. 19.

CUNA staff attending the meeting included Elizabeth Eurgubian, deputy chief advocacy officer; Jared Ihrig, chief compliance officer; and Andy Price and Leah Dempsey, senior directors of advocacy and counsel.