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CFPB Director Richard Cordray today called NAFCU President and CEO Dan Berger to discuss the payday lending proposal the bureau will release Thursday, noting to the NAFCU president that the measure will include a "carve-out" for loans issued under NCUA's payday alternative loan (PAL) program.

NAFCU has been pressing CFPB to use its Dodd-Frank Act exemption authority more effectively to provide credit unions regulatory relief, and it has sought a specific exemption from the bureau's payday lending rulemaking. "We appreciate Director Cordray reaching out to credit unions on this proposal," said Berger. "This is a very good sign, but the proposal will likely be much broader, and we look forward to reviewing it and providing additional comments."

The bureau's long-awaited payday lending proposal has been the subject of numerous, lengthy discussions among NAFCU and CFPB officials and staff. Berger, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt and Director of Regulatory Affairs Alexander Monterrubio met with Cordray in April to discuss the anticipated payday rule as well as the bureau's exemption authority under the Dodd-Frank Act.

The bureau is holding a hearing in Kansas City, Mo., Thursday on the proposal. The hearing will open with remarks from Cordray and CFPB Associate Director of External Affairs Zixta Martinez. The subsequent panel discussion with industry representatives will include Kinecta Federal Credit Union President and CEO Keith Sultemeier. The hearing will be webcast.