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.
  • May 6, 2016
    CFPB Sides with Plaintiff’s Attorneys Over Consumers On Thursday, the CFPB released a proposal limiting consumers’ use of arbitration agreements. The real winners of the proposal were trial attorneys, not consumers. Arbitration has long provided a faster, better, and more cost-effective means of addressing consumer disputes than litigation or class action lawsuits. The CFPB’s own study shows...
  • May 6, 2016
    At least three U.S. banks are preparing to go to market with new small-dollar installment loan products in a move that could potentially disrupt the payday lending industry. Their plans, the details of which were provided to and confirmed by American Banker on condition the institutions not be named, depend on the upcoming Consumer Financial Protection Bureau proposal that would place new...
  • April 22, 2016
    Judge Dings CFPB for Stepping “Well-Outside” Its Authority The CFPB was dealt another blow this week when a D.C. District Court Judge ruled the Bureau had stepped “well-outside” its authority. Judge Richard Leon put a stop to the Bureau’s investigation into a for-profit accreditation organization and dismissed the related enforcement action. The court found the CFPB acted outside its jurisdiction...
  • April 20, 2016
    Today, the CFPB released results of a study which found attempts by online lenders to debit payments from a consumer's checking account add significant costs to online payday loans. The report is based on data collected by the Bureau over an 18-month period between 2011 and 2012 and focusing on online payday and certain online installment loans made by more than 330 lenders. The analysis is a...
  • April 7, 2016
    April 7, 2016 The Honorable Richard Shelby Chairman, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 The Honorable Sherrod Brown Ranking Member, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 Dear Chairman Shelby and Ranking Member Brown: The Consumer Bankers Association (CBA) [1] appreciates the Banking...
  • March 16, 2016
    On Wednesday, March 16, 2016, the House Financial Services Committee held a hearing on the Consumer Financial Protection Bureau’s (CFPB) Semi-Annual Report to Congress featuring testimony from CFPB Director Richard Cordray. Like previous encounters, Republican members of the committee expressed considerable frustration with the Bureau and its leader throughout the hearing. Save comments from Reps...
  • March 16, 2016
    Dear Chairman Hensarling and Ranking Member Waters: The Consumer Bankers Association (CBA) appreciates the Financial Services Committee’s continued oversight of the Consumer Financial Protection Bureau and its activities. We would like to take this opportunity to submit the following comments on the hearing entitled, “The Semi-Annual Report of the Bureau of Consumer Financial Protection.” CBA is...
  • March 15, 2016
    On Tuesday, March 15, 2016, the FDIC Office of Inspector General (OIG) issued a critical review of the agency’s actions several years ago in preventing three banks from offering refund anticipation loans (RAL), and establishing a policy of “moral suasion” to prevent banks from offering them. The OIG blasted the agency for its use of supervisory powers to impose “high costs” on institutions...
  • March 4, 2016
    CBA LIVE 2016 Kicks Off on Sunday We are locked, loaded, and waiting for you to arrive for another record breaking CBA LIVE! A number of us are already on the ground in Phoenix and the rest of the CBA team joins us later today and tomorrow. The final details are getting wrapped up, the weather is perfect, and we all remembered our blue jeans! On Sunday, all the committees and the CBA Board of...
  • February 12, 2016
    Small-Dollar Lending Gets Presidential Attention Earlier this week, President Obama released his final budget proposal which included a $10 million dollar line-item that would fund a small-dollar loan program through Community Development Financial Institutions. President Obama is right to recognize low-and moderate-income American families often need access to short-term liquidity. But here is...

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