Week ahead: Robocalls, payday lending and more

Following its two-week recess, the House and Senate are back to discuss some key credit union issues.

Up first are two hearings in the House Financial Services committee on Tuesday that will focus on America's housing needs as well as debt traps within the payday and small-dollar credit industries.

Credit unions have previously welcomed the National Credit Union Administration’s proposed payday alternative loan changes, but were concerned about the suggested 28% APR cap as being too low. They argued that could pose a significant barrier to financial institutions providing this type of credit.

When the Consumer Financial Protection Bureau issued its final rule in 2017, the agency listened to the industry’s concerns and provided a safe harbor for credit union PALs that meet NCUA’s standards. With an upcoming deadline four months away, NCUA is currently working on a second PAL option that would allow small-dollar loans a minimum maturity rate of 30 days.

The ongoing debate about robocalling will continue in the Subcommittee on Communications and Technology on Tuesday as well. Credit union trade groups have long pushed the House to have the Federal Communication Commission amend rules that limit credit unions and banks from reaching out to their members through automated dialing systems. A key focus will be on distinguishing between credit union communications and robocalls.

Congress is taking an interest in financial literacy with last week's introduction of H.Res.327: "Encouraging greater public-private sector collaboration to promote financial literacy for students and young adults.” With America's trillion-dollar student debt problem, more financial institutions are encouraged to walk students through their options to better prepare them for future financial success.

House Financial Services will also tackle discrimination in auto lending and review business cases for diversity and inclusion on Wednesday. Credit unions have previously experienced their own fair share of lawsuits, including that of Suffolk Federal Credit Union's discrimination suit. The Medford, N.Y.-based credit union was accused of discriminating against minority individuals who sought out mortgage program information.

Credit union priorities will have to fight for lawmakers’ collective attention this week as the House Judiciary Committee holds a hearing on Thursday that will focus on Special Counsel Robert Mueller's report.