MCUL, CUNA, NCUA Chairman and Many Others Urge CFPB to Reconsider Payday Proposal
On Oct. 7, the MCUL and hundreds of thousands of others filed comment letters with the CFPB urging the CFPB to consider the significant impact the Bureau’s proposal would have on credit unions. Following CUNA’s lead, the MCUL urged the CFPB to consider the impact the proposal would have on credit union small dollar lending programs, the programs created to get consumers out of a payday debt cycle and afford them with better, low cost options. The MCUL also cited CUNA in urging the Bureau to exempt credit unions from this rulemaking as well as consider the unique nature and history of credit unions.
The Small Business Administration (SBA), another government agency weighing in on the proposal, also cited CUNA information urging a credit union exemption, sharing particular concern with the impact the proposal would have on credit unions, noting that the Bureau needs to recognize the NCUA’s expertise in the area of credit unions. The SBA also stated that the proposed rule adds unnecessary complexity and new compliance burdens to consumer friendly credit union small dollar loans and asked the CFPB to recognize the NCUA’s expertise in the area of credit union lending programs.
CUNA and NCUA Chairman Rick Metsger filed their comments with the Bureau Oct. 5. CUNA urged the Bureau to withdraw the rule, or in lieu of withdrawing the rule, provide a blanket exemption for credit unions, a position that MCUL strongly supports. A critical concern among the national trade associations and the MCUL is the proposal, if finalized in its current form, could rob consumers of safe and affordable alternatives to payday lenders. Chairman Metsger, in his comments to the Bureau, sought a blanket exemption for the NCUA’s Payday Alternative Loan Program.
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