CUNA response to CFPB Payday Lending Report
WASHINGTON, DC (April 20, 2016) — In response to a recent report on payday lending conducted by the Consumer Financial Protection Bureau, Credit Union National Association (CUNA) president/CEO Jim Nussle released the following statement:
“The CFPB’s report today highlights the concerns credit unions have been voicing to the bureau about when consumers are forced to turn to inferior products such as less, or nonregulated, online payday lenders. As opposed to offshore, or online payday lenders, credit unions know their members and work with them to navigate through difficult financial situations. It is essential that CFPB rulemakings do not stand in the way of credit unions’ ability to continue to offer the diverse products and services that consumers want and need such as free checking accounts, so that consumers can turn to their local credit union – not predatory lenders – during times of distress.
“Director Cordray has repeatedly publicly stated that credit unions are the responsible lenders and the responsible financial institutions in the industry. Just this February, Director Cordray stated at the 2016 CUNA GAC:
‘Through the shared values of putting people first, the Consumer Bureau and the credit unions are working to do right by people and make further strides for those we serve.
‘Credit unions made consumer protection “job one” long before our agency came to be, and we at the Consumer Bureau are well aware of it.
‘If you have not gotten my point by now, let me say as bluntly as I can that I believe credit unions and the Consumer Bureau have much ground in common. We both want to see a world where consumers understand their options, weigh their choices carefully, and make sound decisions. A more educated consumer is a central tenet of our mission. We want people to be comfortable and confident when they consider mortgages, credit cards, checking accounts, small-dollar loans, and a host of other financial products and services.’
“Based on this acknowledgement, we are hopeful that any future CFPB rulemaking addresses irresponsible payday lenders while preserving credit unions’ ability to provide products and services that their members want and request.”
About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
