WASHINGTON—The CFPB has issued a final rulemaking to delay the Aug. 19 compliance date of its payday-lending rule by 15 months to Nov. 19, 2020.
The Bureau also made correcting amendments to the rule to address errors. The delay has the support of credit union trade groups.
NAFCU said it supports the delay "to allow the Bureau time to expand the Payday Rule's safe harbor exemption to encompass all future iterations of [payday alternative loans (PALs)] finalized by the [NCUA]. NAFCU cannot fully support a Revised Rule that refuses to exclude all future PALs programs."
At the time the Bureau issued the proposal to delay the rule, NAFCU President and CEO Dan Berger said, "We are pleased that the CFPB is going to delay the payday rule for further consideration. NAFCU supports the removal of problematic ability to repay portions of the rule, but we also want to ensure that, going forward, the egregious practices of certain payday lenders are addressed. Credit unions provide many forms of small-dollar loans and other affordable products to their members, and NAFCU urges all consumers to consider a credit union for their financial needs."
CUNA’s Position
CUNA also offered its support.
“We thank the CFPB for finalizing the delay in the effective date of certain provisions, as the additional time will provide credit unions opportunity to prepare as the CFPB continues to pursue further changes,” said Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer. “CUNA continues to urge the CFPB to further examine and revise the payday rule to avoid any negative effects on credit union small-dollar loan programs due to their history and mission of providing safe and affordable small-dollar credit, while still holding non-depository lenders with histories consumer abuse accountable.”
The Bureau has released a table of contents for the final rule as well as an unofficial redline to assist credit unions in reviewing the changes that the final rule makes.