September 07, 2017

NAFCU hosts small-dollar lending working group with CUs, industry experts

NAFCU today is hosting a small-dollar lending working group discussion on the implications of the CFPB's payday lending rulemaking, among other provisions, with representatives from several NAFCU-member credit unions, Pew Research Center, Center for Financial Services Innovation and Filene Research Institute.

All groups involved will give background on the issue of small-dollar lending, such as consumers' needs regarding access to liquidity, credit unions' comparative advantage in meeting their members' needs affordably and safely, and how these types of loans could best be structured to benefit consumers.

NAFCU has continually urged the CFPB to withdraw its payday lending proposal, due to be finalized at any time, noting that its complexity and breadth will only impede consumer access to credit and negatively impact the credit union industry.

The association has further argued that the payday rulemaking would illegally override the Federal Credit Union Act by restricting credit unions' right of offset, improperly displace NCUA regulations regarding the interest rate ceiling for credit union loans, and create an unprecedented and unjustified expansion of the CFPB's UDAAP (unfair, deceptive or abusive acts and practices) authority.