news.cuna.org/articles/111093-cfpb-witness-indicates-upcoming-payday-lending-proposal-will-protect-credit-union-products

CFPB Witness Indicates Upcoming Payday Lending Proposal Will Protect Credit Union Products

February 11, 2016

FOR IMMEDIATE RELEASE

CONTACT: Vicki Christner - CUNA Communications; 202-508-6754; vchristner@cuna.coop

Jim Nussle, President/CEO of the Credit Union National Association (CUNA), issued a statement following the House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing on short-term, small dollar loans:  

“I would like to thank the CFPB for agreeing that the NCUA PAL program should not be pre-empted in the forthcoming rulemaking for small dollar and payday loans during an exchange at today's hearing with Representative Denny Heck (D-WA). We also appreciated the CFPB clarifying that it does not intend to disrupt the kind of thoughtful lending that credit unions do in response to a question from Representative Keith Rothfus (R-PA). We understand this to mean that the CFPB does not plan to sweep consumer friendly credit union small-dollar loans offered by both federal and state-charted credit unions into its rule, which would ensure that credit unions' ability to provide safe and affordable alternatives is not inhibited.”