May 31, 2016

CFPB field hearing tomorrow on small-dollar lending

The CFPB will hold a field hearing tomorrow in Kansas City, Mo., on small-dollar lending, the subject of a soon-to-be released CFPB proposed rule.

The hearing will begin with opening remarks from CFPB Director Richard Cordray and 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.

NAFCU will monitor the event and evaluate the accompanying proposal on small-dollar lending.

NAFCU has urged CFPB to more effectively use its exemption authority under Section 1022(b)(3)(A) of the Dodd-Frank Act to exempt credit unions from the bureau's rulemakings. In particular, NAFCU is seeking an exemption that would protect credit unions that make short-term, small-dollar loans in accordance with current state and federal laws, such as the payday alternative loan (PAL) program.