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Consumer Financial Protection Bureau Director Richard Cordray announced the release yesterday of examination procedures that the bureau's examiners will use when evaluating short-term, small-dollar lending products offered by banks and payday lenders.

The CFPB director noted the examination procedures during a field hearing the bureau conducted yesterday in Birmingham, Ala. At the hearing, financial industry representatives, civil rights groups and bureau staff presented their perspectives on payday lending.

Cordray said the bureau will give payday lenders much more attention. "Our examination authority is an important tool that will allow us to inspect their books, ask tough questions, and work with them to fix any problems we uncover. This includes looking at the materials and strategies that are used to market the loans," he said in his written remarks for the hearing.

With Cordray in place as the bureau's director, the CFPB now has the authority to examine payday lenders. His appointment, which occurred during a three-day break in Senate pro forma sessions earlier this month, is a matter of contention for Republican lawmakers and will be the subject of a Jan. 24 House Oversight subcommittee hearing.

NAFCU will monitor this hearing and report developments to member credit unions.