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.
  • September 16, 2016
    CBA Elects Ross Carey of U.S. Bank as Chairman A big congratulations to U.S. Bank’s Ross Carey , who was elected to succeed Will Howle of Citi as CBA’s Chairman of the Board, and Brad Conner of Citizens Financial Group, who was named Chair-Elect for 2017. I thank Will for his service as Chairman and I look forward to continuing to work with him in his new leadership role of Immediate Past Chair...
  • September 12, 2016
    On Monday, September 12, 2016, the CFPB entered into a consent order with Bridgepoint Education, Inc., a for-profit, post-secondary education company based in San Diego, for allegedly deceiving students into taking out private student loans which cost more than advertised. The Bureau is ordering Bridgepoint to discharge all outstanding private loans made by the institution to its students and to...
  • July 20, 2016
    On Wednesday, July 20, 2016, 28 Senate Democrats sent a letter to the CFPB commending the agency’s proposed Payday and Small-Dollar Lending Rule. The Senators also expressed concern the rule did not go far enough, stating they “encourage the CFPB to strengthen certain protections in the proposed rule to ensure the strongest possible defense against the predatory lending models that trap consumers...
  • July 11, 2016
    Washington, D.C. (July 11, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today released the following statement after MeasureOne released their “ Q1 2106 Private Student Loan Report.” The report updates a previously released comprehensive study of the private student loan market and reveals continued positive performance trends. “The private student loan...
  • July 6, 2016
    On Wednesday, July 6, 2016, Hillary Clinton announced new higher-education related proposals intended to appeal to young voters. Specifically, she proposed using an executive action to impose a three-month moratorium on federal student loan repayments allowing borrowers to refinance their loans at current rates. In addition, she advocated students be able to graduate from a public college or...
  • June 21, 2016
    June 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, 2016
    On 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, 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 7, 2016
    The 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 3, 2016
    Thanks 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...

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