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CFPB Heeds CU Recommendations for Payday Alternative Loan Program
Monday, November 20, 2017 6:50 AM

The Consumer Financial Protection Bureau published its final short-term, small-dollar loan rule in the Federal Register Friday, with an effective date of Jan. 16. The CFPB appears to have listened to our concerns and incorporated changes to the final rule that provide some relief for credit unions, says Cornerstone Credit Union League's SVP Regulatory Compliance Suzanne Yashewski.

In addition to Cornerstone's comment letter and calls to action, credit unions from around the Cornerstone region submitted 78 comments from 65 different credit unions.

"Cornerstone representatives also met with CFPB staff and Director Cordray during the summer 2016 Hike the Hill and expressed our concerns and suggestions about a full exemption for the NCUA Payday Alternative Loan (PAL) program and additional changes to accommodate small dollar loan programs," said Yashewski. "This is proof credit unions can be a force for change when they take opportunities to make their voices heard."

Through CUNA, Cornerstone, credit union, and member advocacy, the CFPB heard credit union concerns over the rule and released a final rule that resulted in a big win for the credit union movement.

Changes to the rule were also a major goal of CUNA’s Campaign for Common-Sense Regulation. CUNA’s Final Rule Analysis of the rule is available with details, along with their 61-page comment letter, which outlined why the CFPB should make significant changes to the proposed rule to ensure credit unions are not impacted.