WASHINGTON–CUNA met last week with the CFPB to caution the agency that new rules being proposed around payday lending could cause some credit unions to drop their payday loan alternatives.
Specifically, CUNA pressed its case to CFPB that any additional regulations around NCUA’s Payday Alternative Loans framework would be harmful.
“We expressed that credit unions make very little profit on these loans and they have higher default rates,” said Leah Dempsey, senior director of advocacy and counsel with CUNA. “We said that any changes might cause credit unions to consider dropping such programs and that a one-size-fits-all rule might not be feasible for credit unions.”
Dempsey said it plans to continue to meet with the CFPB on the issue.