The Consumer Financial Protection Bureau on Wednesday issued a report on payday lending that was critical of so-called deposit advance loans it said are offered by banks and credit unions.
Although credit union short-term, small-amount payday loan alternatives were not included in the report, the CFPB said it is also researching them and will publish results in an "overdraft study" in the next couple of months.
The CFPB hasn't clearly stated it intends to write new rules for payday lending products, but Director Richard Cordray said during a press call that "the purpose of all our outreach, research, and analysis on these issues is to help us figure out the right approach to protect consumers and ensure that they will have access to a small loan market that is fair, transparent, and competitive."
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