CFPB to reconsider payday lending rule
The CFPB on Tuesday announced plans to revisit and reconsider its payday lending rule. Yesterday marked the effective date of the final rule, though most of the compliance deadlines do not go into effect until Aug. 19, 2019.
"At this point, it is too early to see how the CFPB is going to change the rulemaking," said NAFCU Director of Regulatory Affairs Alexander Monterrubio. "At the same time, we do encourage the CFPB to evaluate their rulemakings on an ongoing basis. We hope the CFPB focuses on the bad actors and not those who offer individuals with responsible short-term, small-dollar credit."
The final rule addresses many concerns raised by NAFCU and its members to ensure credit unions' ability to meet consumers' needs for short-term, small-dollar loans. Specifically, it exempts all loans issued by credit unions in conformance with NCUA parameters for payday-alternative loans (PAL). It also explicitly sanctions a federal credit union's statutory right of offset to collect against an outstanding balance on a covered loan.
NAFCU will keep members apprised of any changes to the rule that would apply to the credit union industry.
Add to Calendar 2019-08-21 14:00:00 2019-08-21 14:00:00 Small-Dollar Lending: Meeting Your Members' Needs Watch the Webinar On-Demand About the Webinar According to leading economic indicators in June 2019, the US economy is doing well. It has steady growth, low unemployment, and little inflation. Yet, nearly 4 out of every 10 Americans said they wouldn’t be able to scrape together the cash to meet a $400 emergency expense. What are the economic forces at work contributing to this anomaly? And how can your credit union help? Research has demonstrated that consumers would prefer to obtain short-term credit from YOU, their local credit union, and regulatory agencies such as the CFPB and NCUA as well as numerous consumer advocacy organizations are encouraging credit unions to provide responsible small-dollar loans to their members. Historically, the two biggest impediments for credit unions to offer affordable short-term loans were complex regulatory requirements and operational obstacles: time, cost, and technology. In this webinar, Christopher Leonard, CEO of Velocity Solutions, explains that these obstacles are no longer in your way! By leveraging digital, turnkey loan platforms, credit unions can provide much-needed liquidity to their members—responsibly, affordably, and compliantly. Christopher will discuss what to look for in partnering with a FinTech provider, and what types of features your members want from a small-dollar loan product. Key Takeaways: A startling percentage of American consumers are cash poor – why? Regulatory agencies are looking to community financial institutions to provide responsible short-term credit to these consumers. The impediments that have prevented credit unions from providing small-dollar loans to their members in the past are no longer obstacles! How to get started in choosing a FinTech provider and loan platform. Web NAFCU email@example.com America/New_York public
Velocity Solutions, LLC
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