NCUA issues notice on CFPB payday lending rule
small entity compliance guide

March 6, 2019 – NCUA has alerted credit unions that, on Feb. 20, the Consumer Financial Protection Bureau (CFPB) released a small entity compliance guide summarizing the payment-related provisions of the bureau's Payday Lending Rule.

In an announcement (part of its NCUA Express service), the agency noted that the CFPB’s Payday Lending Rule prohibits, among other things, payday and certain other lenders from making a new attempt to withdraw funds from an account where two consecutive attempts have failed, unless consumers consent to further withdrawals.

The guide summarizes the Payday Lending Rule’s general coverage provisions, and record retention and compliance program requirements related to the payment provisions. The guide specifically notes the Payday Lending Rule exempts loans that align with NCUA’s Payday Alternative Loan program requirements.

Notwithstanding the Bureau’s recently issued proposed rulemaking — which, if finalized, would rescind the underwriting standards of the Payday Lending Rule — the payment provisions will take effect Aug. 19.

LINK:
NASCUS CFPB news, updates: Payment-related rules of payday lending addressed in guide