Removing Barriers Blog

BCFP Issues Statement on Payday Rule
Posted October 29, 2018 by CUNA Advocacy

On Friday, the Bureau of Consumer and Financial Protection (BCFP or Bureau) issued a statement announcing an intent to issue a proposal revising the payday rule in January 2019.  While a final decision regarding the scope of the proposal will be made closer to its issuance, the Bureau expects the proposal to only address the ability-to-repay provisions, not the payments provisions. 

CUNA has supported the Bureau revising its payday rule to allow for credit unions to enter the short-term, small dollar lending space.  This would include creating a broader exemption for credit unions and working with NCUA as the agency develops other small dollar programs to coincide with the Payday Alternative Loan (PAL) program. 

In the statement, the Bureau said they intend to publish the proposal as quickly as practicable consistent with the Administrative Procedure Act (APA).