Payday and Small Dollar Lending
Impact
The rule as originally proposed swept in a number of credit unions short-term, small-dollar loan products, and other products such as auto refinance loans. Fortunately, in the final rule, the Consumer Financial Protection Bureau (CFPB) addressed many of CUNA's specific recommendations and concerns.
Where We Stand
Credit unions provide the safest and most affordable options for those in need of small dollar loans. Rules should be tailored to address predatory actors who abuse consumers. However, they should not inhibit credit unions from participating in this market and continuing to offer credit to members in need.
What we've told lawmakers & regulators
legislative letter
Financial trade associations’ views of fee and interest rate cap legislation
CUNA joined a number of trades in writing to Chairman Brown and Ranking Member Toomey.
The undersigned trade associations, representing depository institutions that serve millions of American consumers, are pleased to share our views on pending legislative measures that propose to limit the fees and interest charged on consumer loans, such as bills that would impose a national “fee and interest rate” cap of 36%.
CFPB Issues Final Rule on Payday Lending
The CFPB issued a final rule rescinding the mandatory underwriting provisions of the 2017 rule after re-evaluating the legal and evidentiary bases for these provisions and finding them to be insufficient. The final rule does not rescind or alter the payments provisions of the 2017 rule.