Small Dollar Lending

Providing financial services to those whose needs require special treatment, either because of the dollar amount of credit sought or other credit-related problems, has been a long-standing concern of CBA and its membership. Categories of those requiring such special treatment include low-income individuals and families, as well as military personnel and others who may be in temporary financial distress. CBA's Government Relations team has worked with financial regulators, the Department of Defense and the U.S. Congress to develop innovative financial products to serve the needs of those requiring special attention based upon their financial situation.
  • October 5, 2017
    Lenders that offer payday loans and other small advances to cash-strapped consumers must first determine if the borrowers can afford to repay the debt under a long-awaited federal rule finalized Thursday. The rule, adopted by the Consumer Financial Protection Bureau, also would curtail repeated attempts by the lenders to debit payments from borrowers’ bank accounts, a practice that racks up...
  • October 5, 2017
    Washington, D.C. - Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the issuance of the CFPB’s final rule on small-dollar lending: “The CFPB whiffed at an opportunity to provide assistance to the millions of Americans experiencing financial hardship,” CBA President and CEO Richard Hunt said. “It is hard to believe just days...
  • September 29, 2017
    CBA to CFPB: Help Banks Serve Consumers in Need of Short-Term Credit A huge segment of consumers are struggling to make ends meet in a given month – 43 percent to be exact – according to a new CFPB survey. Since the FDIC and OCC issued guidance essentially pushing banks out of the small-dollar lending market, consumers have been forced to use less-safe, less-regulated and more costly entities to...
  • September 28, 2017
    By now, the sobering statistics are familiar: Nearly half of American adults say they could not cover an unexpected expense of $400, according to the Federal Reserve. Now, a new study by the Consumer Financial Protection Bureau (CFPB) similarly shows that more than 40 percent of Americans struggled to pay bills at some point during 2016. But, familiarity doesn’t make it OK. Richard Hunt,...
  • September 27, 2017
    CBA’s Hunt: “We encourage the CFPB to work in coordination with other financial services regulators to create a consistent regulatory environment that does not take away the ability for families with unexpected financial hardships to seek responsible, short-term assistance from their bank.” Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today wrote...
  • August 18, 2017
    Latest on the CFPB, Director Cordray & Small-Dollar Rumors of a potential Labor Day weekend resignation by CFPB Director Richard Cordray continue to circulate, leaving many speculating the Bureau’s small-dollar rule will be released in the coming weeks. If Richard Cordray does choose to resign his post at the CFPB and President Trump appoints a successor, I wonder if Senate Democrats will...
  • August 11, 2017
    Rumor Mill Churning: Will Cordray Run for Governor of Ohio? I cannot read my morning press clips, or anything from an Ohio news outlet for that matter, without seeing coverage of Richard Cordray’s speculated departure as head of the CFPB to run for Governor of Ohio. One thing is for certain – his days atop the agency are numbered. His term expires in 2018, and President Trump will have an...
  • July 28, 2017
    CBA Executive Banking School is in Full Swing CBA’s 66th session of Executive Banking School is off and running! This week, nearly 300 students joined us at Furman University in Greenville, S.C. to hone their retail banking skills. Thank you to Dennis Devine , CBA Board Member and Co-President of Key Community Bank, Kelly King , President and CEO of BB&T Bank, and our distinguished faculty...
  • July 14, 2017
    Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the House Appropriations Committee’s passage of the Fiscal Year (FY) 2018 Financial Services and General Government Appropriations bill. “We applaud the committee’s passage of several initiatives reforming the CFPB, including addressing the Bureau’s...
  • July 12, 2017
    July 13, 2017 The Honorable Trey Hollingsworth U.S. House of Representatives 1641 Longworth House Office Building Washington, D.C. 20515 Dear Representative Hollingsworth: The Consumer Bankers Association (CBA) commends you for introducing the Ensuring Quality Unbiased Access to Loans Act of 2017. This legislation will provide consumers access to small-dollar bank loans, often known as deposit...

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