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Webinar, Letter to Editor Explore CFPB Small-Dollar Lending Rule

Nationally, financial institutions have been following the Consumer Financial Protection Bureau's (CFPB) proposed rule regarding payday and small-dollar lending. This proposal has the potential to affect credit union lending of all types, including small-dollar, installment and auto refinances.

Learn more about the proposal during a FREE webinar on July 6 at 1 p.m. A recording of the webinar will be available the next day.

Credit union leaders have already started to voice their opinions on this issue. In a recent letter to the editor, Patrick Adams, CEO of St. Louis Community Credit Union, described the negative impact of check cashing and payday/title lending companies on the community. However, eliminating the payday lenders may not lessen demand for these types of loans and services. 

"The CFPB should institute regulations that set boundaries and allow St. Louis Community Credit Union and others to be flexible and creative," wrote Adams. "Too much regulation will discourage small-dollar alternatives."

In addition, he encouraged financial institutions to take action and offer alternatives. 

"St. Louis Community Credit Union, with RedDough Money Centers, invites banks and credit unions to join our efforts to create wealth. It is possible to charge fair rates and low fees. It is possible to collect a loan without demeaning practices. And it is possible to make a meaningful investment in our community. We know. We do it every day," wrote Adams.

Read Adams' letter here