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 2, 2016
    Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the CFPB’s issuance of a proposed rule on small-dollar lending. “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. Judging from tonight’s highly...
  • June 2, 2016
    Lenders 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 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 also...
  • June 2, 2016
    Lenders 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 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 also...
  • June 2, 2016
    The federal government has proposed new rules aimed at protecting consumers from loan traps. The Consumer Financial Protection Bureau wants lenders to make sure borrowers can pay them back by conducting a "full-payment test" before loans are granted. The full-payment test would require lenders to calculate whether borrowers can afford to make repayments on time and still cover basic living...
  • June 2, 2016
    Lenders 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 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 also...
  • June 1, 2016
    The Consumer Financial Protection Bureau will release a set of sweeping proposals Thursday aimed at reshaping the market for payday loans and other types of expensive credit that both the agency and consumer advocates call “debt traps.” The proposed regulations, set to be released in advance of a Kansas City, Mo., hearing, come after years of preparation by the bureau, which has since 2013...
  • June 1, 2016
    At 12:01 a.m. this morning, the CFPB released its highly anticipated proposal on small-dollar lending. Based on the Bureau's press release and an initial review, the proposal will make it difficult for any lender to offer affordable, easy to use products to consumers that have few, if any, other short-term liquidity options. Loans covered under the rule include payday loans, vehicle title loans,...
  • June 1, 2016
    Washington, D.C. (June 1, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the CFPB’s issuance of a proposed rule on small-dollar lending. “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...
  • May 31, 2016
    Development: Financial industry waits for consumer watchdog to pass down rule on payday loans. Next Step: CFPB to hold field hearing on small-dollar lending June 2. May 31 (BNA) -- The Consumer Financial Protection Bureau (CFPB) is expected to release a rule this week that could upend the payday lending industry, but it remains unclear whether banks will step into the void absent clearer guidance...

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