BIRMINGHAM, Ala.-A group of credit unions here were given a briefing on the direction of the new Consumer Financial Protection Bureau by that agency's new leader.
The meeting was held in conjunction with a field hearing on payday lending by the CFPB. With new Director Richard Cordray in attendance, two panels-comprised of financial institutions and payday lenders-discussed the issue. Daryl McMinn, VP of operations at Listerhill CU, Muscle Shoals, Ala., represented credit unions.
Cordray said the CFPB recognizes the need for emergency credit. "At the same time, it is important that these products actually help consumers, rather than harm them. The Bureau will be giving payday lenders much more attention."
Following the hearing, Cordray and his staff spent an hour visiting with 10 credit unions at the Birmingham Civil Rights Institute, and reiterated that the agency's view of credit unions is positive and that its own mission lines up with that of CUs.
"We're working to address a number of issues in financial markets," Cordray said. "In every one of those markets, in my view, the credit union perspective is an important perspective. We want to have it and it will help inform our work... People swear by and love (the CU) membership model and I think it's important we preserve that."
Birmingham was chosenfor the meeting because Alabama has more than 1,000 payday lenders, 80 of those in Birmingham. The city recently instituted a six-month moratorium on any new payday lenders.
