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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.
- June 21, 2016June 21, 2016 The Honorable Paul Ryan The Honorable Nancy Pelosi Speaker Minority Leader U.S. House of Representatives U.S. House of Representatives Washington, D.C. 20515 Washington, D.C. 20515 Dear Speaker Ryan and Minority Leader Pelosi: On behalf of the Consumer Bankers Association (CBA), I write to express our support for H.R. 5485, the Fiscal Year 2017 Financial Services and General...
- June 9, 2016On Thursday, June 9, 2016, the CFPB Consumer Advisory Board (CAB) met in Little Rock, Arkansas to discuss an auto lending education initiative, trend and themes, and the payday proposal. In his remarks, CFPB Director Richard Cordray stated, “Consumers should feel like they are in the driver’s seat when it comes to financing their car or truck…The CFPB’s auto loan shopping sheet provides a roadmap...June 7, 2016The Obama administration on Thursday released its long-awaited proposal to crack down on so-called “payday lenders,” the firms that charge huge interest rates to customers who need a fast, short-term loan. Payday lending has become an increasing concern among regulators after the passage of Dodd-Frank, as advocates highlight just how many borrowers get hurt by predatory loan agencies. The 1334-...June 7, 2016“The most important number to keep in mind here is 12 million. A lot of numbers are getting thrown around in this debate, but 12 million is the one to watch because that is the number of Americans seeking small-dollar loans each year.” Around 12 million Americans seek payday loans every year. The majority of borrowers are single, white women with children. Most have a full-time job, a...June 3, 2016Thanks to CFPB, Pawn Star’s Rick Harrison Is the Happiest Man In America At 12:01 a.m. Thursday morning, the CFPB released its highly anticipated small-dollar lending proposal . The CFPB has indicated it would like to see banks provide small-dollar loans to consumers in need, like the nearly half of the country who cannot afford a $400 emergency expense . But judging from its highly restrictive...June 2, 2016June 2, 2016Claiming Americans consumers have been “set up to fail” by the short-term lending industry, federal regulators on Thursday issued sweeping new rules that would drastically alter the payday and title lending industries. Under the proposed rule from the Consumer Financial Protection Bureau, short-term lenders would have to verify borrowers’ ability to promptly repay loans, and be prevented from...June 2, 2016The Obama administration’s new regulations for payday loans are based on a seemingly simple principle: Lenders should only extend credit to borrowers if they have confirmed those customers can afford the deal. But the rules crafted to implement that notion are incredibly complex. And some analysts say they may backfire—discouraging new lenders from entering the business while preserving the...June 2, 2016Payday lenders and title-loan companies, who have flooded the market in Columbia and southern Middle Tennessee in recent years, will face major overhauls of their practices if new federal regulations go into effect. The City of Columbia attempted to limit the spread of payday lenders before federal action. The city council passed an ordinance in 2014 limiting payday lenders’ ability to cluster in...June 2, 2016Lenders who offer payday loans and other small-dollar advances would have to assess whether borrowers could afford and repay the debts, according to a federal rule set to be proposed Thursday. The long-awaited Consumer Financial Protection Bureau proposal would also cut off repeated debit attempts that hit overdue borrowers with additional fees and charges as lenders seek repayment. The regulator...