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What CUs should know about payday rule delay
NAFCU has a Final Regulation available for members detailing the CFPB's final rulemaking to delay its payday lending rule's compliance date by 15 months to Nov. 19, 2020, and how it will affect credit unions.
The final rule also includes corrections to address non-substantive errors.
In the Final Regulation, NAFCU notes that "if your credit union makes 'covered loans' as defined by the Payday Rule you must still comply with all other provisions of the Payday Rule, including the payment and recordkeeping provisions, by August 19, 2019."
Earlier this year, the bureau issued another proposal related to payday lending which would remove mandatory underwriting requirements including ability-to-repay (ATR) provision which NAFCU provided comments on last month.
In May, NAFCU Director of Regulatory Affairs Ann Kossachev and Regulatory Affairs Counsel Kaley Schafer were joined by member credit unions in meetings with the CFPB and NCUA to discuss payday-lending related issues. NAFCU continues to advocate that the bureau to expand the rule's safe harbor as the NCUA seeks to enhance its payday alternative loans (PALS) program.
For more on the final rule, read the Final Regulation here.