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.
  • February 12, 2016
    On Friday, February 12, 2016, the OCC issued the “Installment Lending” booklet of the Comptroller’s Handbook. This revised booklet updates and replaces the “Installment Loans” booklet issued in March of 1990 (and examination procedures issued in March of 1998). The updated booklet: Rescinds OCC Bulletin 2004-59, “Retail Lending: Interim Examination Procedures;” Provides updated guidance to...
  • February 11, 2016
    February 11, 2016 Dear Chairman Neugebauer and Ranking Member Clay: The Consumer Bankers Association (CBA) commends you for calling today’s timely hearing to examine the short-term, small-dollar credit marketplace and how lenders in this market meet consumers’ need for credit. CBA is the voice of the retail banking industry whose services provide access to credit for consumers and small...
  • February 11, 2016
    On Thursday, February, 11, 2016, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled: “Short-term, Small-dollar Lending: The CFPB’s Assault on Access to Credit and Trampling of State and Tribal Sovereignty.” Members of the Committee heard testimony from two panels of witnesses including CFPB Acting Deputy Director David Silberman , who...
  • February 10, 2016
    The final budget proposal of President Barack Obama vows to maintain the administration's vigil against efforts to compromise the mission of the Consumer Financial Protection Bureau (CFPB). The fiscal 2017 budget proposal, released Feb. 9, would significantly increase funding of the Securities and Exchange Commission and the Commodity Futures Trading Commission, and the administration said it...
  • February 10, 2016
    The Consumer Financial Protection Bureau, preparing to roll out rules​aimed at reining in high-interest payday loans, is jawboning banks and credit unions to provide better alternatives for borrowers in need of small, short-term loans. Richard Cordray, director of the watchdog agency, said it is discussing ways to make it easier for banks and credit unions to offer “small-dollar” loans. The step...
  • February 9, 2016
    Washington, D.C. (February 9, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the Obama administration’s proposal to fund a program that would offer small-dollar loans through Community Development Financial Institutions, according to the fiscal-year 2017 budget proposal released today: “President Obama is right to...
  • February 9, 2016
    On Tuesday, February 9, 2016, President Obama released his Fiscal Year 2017 budget proposal , which would spend $4.1 trillion while increasing taxes by $3.4 trillion next fiscal year. At this rate of spending, the budget projects adding $6.1 trillion to the deficit over the next 10 years, increasing the debt to $24.8 trillion. While the budget blueprint was viewed as dead-on-arrival on Capitol...
  • February 9, 2016
    The Consumer Financial Protection Bureau, preparing to roll out rules​aimed at reining in high-interest payday loans, is jawboning banks and credit unions to provide better alternatives for borrowers in need of small, short-term loans. Richard Cordray, director of the watchdog agency, said it is discussing ways to make it easier for banks and credit unions to offer “small-dollar” loans. The step...
  • February 9, 2016
    The Consumer Financial Protection Bureau, preparing to roll out rules​aimed at reining in high- interest payday loans, is jawboning banks and credit unions to provide better alternatives for borrowers in need of small, short-term loans. Richard Cordray, director of the watchdog agency, said it is discussing ways to make it easier for banks and credit unions to offer "small-dollar" loans. The step...
  • February 8, 2016
    The Obama administration will take another crack at testing the viability of small-dollar loan products when it releases its proposed 2017 budget on Tuesday. The White House and other Democrats have long pushed for banks to offer affordable small-dollar loans as an alternative to payday loans and other costlier credit, but banks have struggled to make them profitable and safe for consumers. "It's...

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