March 21, 2014

CFPB changes payday loan hearing location

March 24, 2014 – CFPB announced a change in location for its scheduled field hearing on payday loans in Nashville, Tenn., tomorrow – it will now take place at the Country Music Hall of Fame instead of the Public Library Auditorium.

The field hearing is scheduled for 11 a.m. CDT, and will feature remarks from CFPB Director Richard Cordray. Testimony from consumer groups, industry representatives and members of the public is also slated. The event is open to the public and requires an RSVP.

CFPB began accepting complaints about payday loans in November. NAFCU continues to closely monitor the data the bureau collects and releases, and has raised concerns about the reputation risk that false complaints in the system could create.

Credit unions are authorized by NCUA to offer small-dollar, short-term loans to their members. The NCUA rules set strict limits on the amount, duration and number of loans that can be provided to a single member at any one time. NCUA says this type of lending grew to $27 million last year, up 27.6 percent from year-end 2012.

NAFCU continues to encourage the agency to provide credit unions as much flexibility as possible in providing their members viable, less-costly loans than they could get elsewhere.