NCUA Webinar with CFPB Director Cordray (Misc News: January 20, 2012)
The newly appointed head of the Consumer Financial Protection Bureau has set a date to speak with credit unions. Richard Cordray will the guest speaker at an upcoming online town hall meeting hosted by NCUA Chair Debbie Matz.
The session is expected to focus on current topics including the role of the CFPB and the NCUA’s Regulatory Modernization Initiative. Participants will be able to submit questions electronically about any topic related to the credit union system or the CFPB.
The webinar will be Feb. 8 at 3 p.m. (EST) and is free. For those who are not able to attend, NCUA plans to post an archived copy of the webinar to its website approximately two weeks after the event. Click here to register for the event.
Meanwhile, the CFPB convened its first field hearing this week, tackling the issue of payday lending. About 400 people attended the public hearing in Alabama, one of the states with the highest concentration of payday lenders. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has authority to examine nonbank payday lenders of all types and sizes, as well as large banks that offer deposit advances.
At the hearing, Alabama credit union leaders detailed how they offer alternatives to harmful payday lending practices. Daryl McMinn, vice president of operations of Listerhill CU in Sheffield, Ala., explained that his credit union offers short-term loans with 18 percent APR. The loans are written for between $250 and $500 with a 30-day repayment and the credit union works with each borrower to provide flexible payment options. He explained that unlike payday lenders, these loans are not allowed to roll over, trapping people in a cycle of debt.