As the leading voice for credit unions that serve low- and moderate-income communities, the Federation monitors the development of regulatory policies and rules from regulators, including the Consumer Financial Protection Bureau (CFPB). We advocate for policies and regulations that help credit unions grow and provide sensible consumer protections without adding undue burdens for compliance and reporting.
The CFPB is currently reviewing practices in the small dollar lending market. In anticipation of any future regulation on small dollar loans, the Federation is engaging the Bureau on providing examples of good practice as well as harmful practices. We are therefore soliciting submissions from you, our members, for best practice in small dollar credit union lending. The Federation may use your response to provide input to the CFPB on their upcoming rule making and to help spread the word about CDCU small dollar loan products that provide alternatives to predatory products that trap consumers in cycles of debt. All submissions will be shared in aggregate (and will not identify specific institutions), unless we reach out directly for your permission.
We are looking for examples of best practice payday alternative products that are both responsible for consumers and sustainable for credit unions. Payday alternative loans typically range in size from $100 – $1,000 with terms between 1-6 months. Please use the form below to submit your credit union’s product no later than Friday, August 22.
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Ann Solomon, Strategic Initiatives Manager