The Consumer Financial Protection Bureau (CFPB) today released a proposed rule making changes to its short-term, small-dollar lending rule. Credit Union National Association (CUNA) has consistently advocated for the CFPB to revise its rule to ensure their 115 million credit union members have access to short-term, small-dollar lending options.
The trade group is currently analyzing the proposal and sent a letter to Director Kathy Kraninger in December, supporting revisions to the rule that would create an express, broader exemption for credit union loan products. CUNA agrees with the CFPB that payday lenders should be effectively regulated.
“Credit unions are known for providing safe and affordable short-term, small-dollar loans designed to keep members away from predatory payday lenders and debt traps,” said CUNA Chief Advocacy Officer Ryan Donovan. “We support bureau efforts to revise this rule, and urge the bureau to ensure these changes do not inhibit credit unions participating in the short-term, small-dollar loan market.”
Credit unions provide the safest and most affordable options for those in need of small dollar loans. CUNA maintains that rule 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.
CUNA Senior Director of Advocacy & Counsel Alexander Monterrubio is available for interview should you have further questions.