36 percent consumer lending cap impacts affordable credit

Published by: Emily Leite

August 11, 2021 | Regulatory

Providing members with access to safe and affordable credit is what your credit union does best. That’s why the League relentlessly advocates on your behalf for a regulatory environment that empowers member service and guards against changes that can inhibit how you deliver it. So when the U.S. Senate Banking and Housing Committee Chairman Sherrod Brown (D-OH) joined Senator Jack Reed (D-RI) and other Committee and Senate leaders in reintroducing the Veterans and Consumers Fair Credit Act, we went to work with CUNA to connect Ohio credit unions with Chairman Brown to talk about the proposal’s impact to successful, consumer-friendly and affordable small-dollar lending programs. The Act seeks to rein in predatory payday lenders and other costly loan product providers by extending the Military Lending Act’s 36%   all-in interest rate cap to cover veterans and all Americans. While federally chartered credit unions participating in the NCUA PALs program would be exempt, most Ohio credit unions would be subject to the more restrictive, all-in interest rate cap standard moving forward, effectively restraining small-dollar lending programs currently available to members. We will continue working with CUNA and Chairman Brown’s office to illustrate how limiting access to credit will bring unintended consequences to consumers that need affordable and emergency capital from their trusted financial partner, like your credit union.

Connect with Chief Advocacy Officer Emily Leite for any questions or concerns regarding the 36% rate cap proposal or if your credit union would like to share a successful small-dollar lending story with Congress.

Contact Emily Leite for questions or assistance.

Emily Leite
Emily Leite Chief Advocacy Officer E: eleite@ohiocul.org
Contact Us

Other Movement News

Government Affairs

Members advance advocacy priorities in Washington, D.C.

Credit union advocacy strength is built by the willingness of Ohio credit unions to go above and beyond to advocate for 3.2 million Ohioans. Last week, 39 leaders from 26 […]
Regulatory

Credit unions connect with NCUA Chairman during Hike the Hill

Optimal regulation occurs when regulators and regulated organizations collaborate on safety, soundness, and consumer protection priorities without negatively impacting operational viability. Almost 40 Ohio credit union leaders traveled to the […]
Member Benefits

Congratulations 2023 award winners

Credit unions make a positive impact on people’s daily lives, and the League is proud to acknowledge the dedicated individuals who make it all happen each year. This year holds […]