Berger: Exempt credit unions from CFPB payday rule

first_img 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr NAFCU President and CEO Dan Berger on Friday sent the CFPB an outline of provisions in the bureau’s payday lending proposal that encroach upon the authority of the NCUA and asked that the bureau use its Dodd-Frank Act authority to exempt credit unions from the rule.Berger noted that while NAFCU and its members appreciate the CFPB’s decision to identify credit unions as model lenders, especially regarding the payday alternative loan (PAL) exemption, “we are deeply concerned with the Bureau’s sweeping and complex new requirements.”Berger pointed to other products credit unions offer, such as signature loans, and wrote that these products may need to undergo new verification and ability-to-repay requirements that could be potentially embarrassing to some consumers and render products less accessible to others.“Credit unions have built a stellar reputation as trustworthy and accessible places for obtaining responsible lending products of all types, which allow the member to address their immediate financial needs in a fair and responsible manner,” Berger wrote. “However, the proposed rule would defeat these efforts by erecting time-consuming and costly barriers for consumers who want timely relief from financial distress.” continue reading »last_img read more