There is concern among credit unions that expected Consumer Financial Protection Bureau payday loan regulations could also shut down credit union alternatives.

While the CFPB has not formally announced that it is working on such regulations, Director Richard Cordray on March 25 came close to acknowledging that new rules were in the works in remarks that accompanied a new CFPB report payday loans.

“I don’t think anyone doubts the CFPB is preparing payday lending regulations,” said Jeremy T. Rosenblum, Practice Leader of Ballard Spahr’s Consumer Financial Services Group. Mr. Rosenblum and others familiar with the CFPB believe that when the new rules do emerge, they will primarily address the terms of payday loans, as well as borrowers’ ability to repay.

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