The CFPB has painted itself into a corner with its proposed payday lending rule.
It faces opposition from credit unions and community banks, which say the NCUA's Payday Alternative Loan structure is unprofitable.
In fact, according to Kinecta FCU President/CEO Keith Sultemeier, who testified at the CFPB's field hearing in Kansas City the day the proposed rule was released, PALs don't even break even. He testified his Manhattan Beach, Calif.-based credit union loses $20 on every PAL.
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