ARLINGTON, Va.– NAFCU Regulatory Affairs Counsel Alexander Monterrubio’s has sent a letter to the Consumer Financial Protection Bureau regarding credit union concerns with a future payday lending rulemaking.
“While there must be adequate consumer protections to address the predatory practices of traditional payday lenders, NAFCU recommends that the Bureau avoid creating any unworkable burdens on credit unions that could prevent them from continuing to fairly and responsibly serve their members,” Monterrubio wrote.
Monterrubio puts forth NAFCU recommendations to ensure the continued existence of credit unions as an alternative to predatory payday lending, which include “any future payday rulemaking promulgated by the Bureau include an express exemption for federal credit unions and other insured depository institutions conducting short-term, small-amount loans in accordance with current state or federal laws, such as the National Credit Union Administration’s Payday Alternative Loan (PAL loan) program.”
A complete copy of the NAFCU letter can be found in The Gov on CUToday.info.