WASHINGTON—NAFCU is asking the CFPB to withdraw its payday lending proposal.
In a comment letter to the Bureau, NAFCU President and CEO Dan Berger cited that the rule would hurt credit unions.
“The CFPB’s payday lending proposal would severely hamper credit unions’ ability to continue offering responsible products such as PAL loans and must be withdrawn,” said Berger. “NAFCU supports unregulated entities being regulated in this area, but credit unions’ prudential regulator, the National Credit Union Administration already established short-term, small dollar loan regulations.
“NAFCU joins with the majority of the members of Congress and reemphasizes its call for the Bureau to use its Dodd-Frank authority to entirely exempt credit unions from this rule,” continued Berger. “Consumers need more of the responsible loans that credit unions provide; unfortunately, without a credit union exemption, this rule will likely deprive members who need these loans the most.”
The comment period for the rule closed Friday.