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Call to Action: Share Your Small Dollar Loan Successes with CFPB

Calling all credit union employees! The Heartland Credit Union Association and the Credit Union National Association need your help in sharing examples that demonstrate how you and your fellow staff members serve your credit union members with short-term, small dollar loans. In particular, instances where members received credit union help after experiencing an unplanned or emergency expense.

The call to action is in response to the Consumer Financial Protection Bureau’s (CFPB) small dollar rule proposal. The proposal is open for comment and there are significant concerns with the rule’s impact on consumer-friendly alternatives, like those found at credit unions.  Click here for more details on the proposal.

To share your examples, visit the Heartland Credit Union Association’s (HCUA) Credit Union Advocates Action Center.  The CFPB will receive the messages, with a copy sent to your U.S. Senators and U.S. Representative. While a sample letter is available for your convenience, personalizing your letter by adding “real-world” stories will go a long way in communicating the credit union difference. 

Ideas for personalizing your letter: 

  • Who you are, your credit union and your what role there, and how you work to help credit union members.
  • Example(s) demonstrating how you have helped a member with a short-term loan need or emergency situation.
  • Describe the impact on your members if your credit union was unable to continue affordable short-term loans due to regulations. 

In addition, HCUA is working on a comment letter for the CFPB's small dollar lending proposal,  to represent the impact on our member credit unions.  Information about payday lending alternatives your credit union may offer or have offered, how the program operates/operated and the impact on your members, is appreciated.  In addition, what impact would a five percent payment-to-income ratio requirement have on the underwriting of a payday loan alternative from your credit union's perspective?  What would be the impact to your credit union providing low-dollar loans, now and in the future?

Please send your responses and any additional questions to Amy McLard, 800.392.3074, x1370.

The Credit Union National Association’s website offers additional details on the CFPB small dollar loan proposal and related links.