Newsroom

Reps. Randy Neugebauer, R-Texas, and Mick Mulvaney, R-S.C., on Friday urged CFPB to hold a forum with elected state and tribal officials to discuss its planned regulation of payday lending.

The lawmakers noted that legislatures in 35 states have enacted small-dollar, short-term lending laws and that the other 15 states have either instituted caps on lending interest rates or decided the industry should continue as it is.

"Unfortunately, on numerous occasions the Bureau has publicly highlighted its disregard for the current state-based regulatory framework," the lawmakers wrote. "Your regulatory posture ignores the popular voice of states and sovereign Indian tribes that have carefully crafted laws to balance consumer protection and access to credit."

Neugebauer and Mulvaney suggested the bureau hold a forum or roundtable with elected state and tribal officials before introducing any regulation on payday lending.

NAFCU has been in communication with CFPB to make sure the upcoming payday loan rule will not hurt credit union payday alternative loans, or PALs. During his testimony before the Senate Banking Committee last week, CFPB Director Richard Cordray singled out PALs as a good, law-abiding product.