CFPB extends comment deadline for payday and small-dollar loan proposal

The Consumer Financial Protection Bureau (CFPB) has extended the comment deadline for its payday and small-dollar loan proposal to Oct. 14. CUNA has also moved back its deadline for accepting comments from credit union stakeholders; comments can now be sent to CUNA through Sept. 19.

The proposal’s overly broad scope sweeps in products and services offered by credit unions that are dissimilar to payday or small-dollar loans, including auto refinance loans.

More information on the proposal can be found in CUNA’s detailed analysis of the proposal, and through a recording of CUNA’s webinar on the rule, which is free for members.

The CFPB issued the proposal in June, and CUNA has received feedback from credit unions about concerns with new regulatory and compliance burdens for federally and state-chartered credit unions. The added requirements, as well as proposed changes to the NCUA’s Payday Alternative Loan (PAL) program, eliminate needed flexibility, credit unions believe.