Removing Barriers Blog

CUNA Meets with CFPB on Payday Loan Rule
Posted December 01, 2015 by CUNA Advocacy

As the CFPB moves closer to releasing a Notice of Proposed Rulemaking for small-dollar, payday loans, we met with bureau staff again this week to advocate for credit union interests on these issues. Elizabeth Eurgubian, deputy chief advocacy officer for regulatory and executive branch relations, Mike Schenk, vice president of Economics and Statistics, and Andy Price and Leah Dempsey, senior directors of advocacy and counsel, urged CFPB staff to again consider how certain proposals under consideration for the rule could be problematic for credit unions.

We again expressed the importance of allowing credit unions to easily participate in the small-dollar loan market, to serve members in need of short-term liquidity. Specifically, we reiterated that adding additional requirements to NCUA’s PAL rule could hamper the nascent program. We also highlighted that credit unions make very little profit on these loans. As such, any roadblocks to participation, even if minimally burdensome, could simply drive credit unions out of this market and leave less options for consumers.

The most recent bureau rulemaking agenda indicates that the CFPB plans to release a proposed rule in February 2016 for small-dollar, payday loans, and that it will also release additional research on this topic.