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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, 2017June 21, 2017 The Honorable James Mattis Secretary of Defense 1000 Defense Pentagon Washington, DC 20301-1000 Dear Mr. Secretary, As we approach the first anniversary of the implementation of the Department of Defense’s amended Military Lending Act (MLA) Regulation, the Financial Trade Associations – the American Bankers Association, the American Financial Services Association, the Association of...
- June 21, 2017On Friday, June 21, 2017, CBA and other financial trades submitted a letter to the U.S. Department of Defense (DoD) recommending changes to the Military Lending Act (MLA). Specifically, the letter requests the DoD: Clarify the exemption for purchase money loans (including vehicle purchase money loans) applies unless the borrower is receiving cash from the proceeds of the loan. Thus, purchase...April 20, 2017On Thursday, April 20, 2017, the CFPB released a final rule delaying the general effective date of the rule governing prepaid accounts by six months. The rule will now take effect on April 1, 2018. Additionally, in the coming weeks, the Bureau plans to revisit at least two substantive issues in the prepaid accounts rule through a separate notice and comment rulemaking process. These include: The...April 13, 2017April 13, 2017 The Honorable Mike Crapo Chairman Committee on Banking, Housing, and Urban Affairs U.S. Senate 534 Dirksen Senate Office Building Washington, D.C. 20510 The Honorable Sherrod Brown Ranking Member Committee on Banking, Housing, and Urban Affairs U.S. Senate 534 Dirksen Senate Office Building Washington, D.C. 20510 Dear Chairman Crapo and Ranking Member Brown: The Consumer Bankers...December 22, 2016Happy Holidays From CBA On behalf of all of us here at CBA, we would like to wish you and your family a very Merry Christmas and Happy Hanukkah. For the holidays, I am heading home to Jennings, Louisiana to visit my family, and I hope you are able to do the same. Be safe, and I look forward to catching up with everyone in 2017. A Sit-down With Our Chairman on What it Means to be a Banker Tackling...December 19, 2016On Monday, December 19, 2016, the CFPB took action against four Virginia pawnbrokers for allegedly deceiving consumers about the actual annual costs of their loans. The pawnbrokers are Spotsylvania Gold & Pawn , Inc.; Fredericksburg Pawn, Inc . ; Pawn U.S.A., Inc. ; and A to Z Pawn, Inc. In lawsuits filed in federal court, the agency alleged the four companies broke the law by misstating the...October 27, 2016A banking trade group told regulators that its members have changed or are changing contracts for private student-loan customers to ensure that loans in good standing aren’t placed in default because a co-signer has died or filed for bankruptcy. The changes address the regulators’ criticism of the banks’ practice, called “auto-defaults.” The system causes surprise defaults for borrowers when the...October 7, 2016On October 7, 2016, Sens. Heidi Heitkamp (D-ND), Claire McCaskill (D-MO) and Joe Manchin (D-WV) submitted a comment letter to CFPB Director Richard Cordray urging the Final Payday and Small Dollar Lending Rule be written so consumer access to small-dollar credit from traditional lenders, such as banks and credit unions, not be unintentionally cut off for Americans who need it most. They expressed...October 7, 2016By Electronic Filing October 6, 2016 Monica Jackson Office of the Executive Secretary Consumer Financial Protection Bureau 1700 G Street NW Washington, DC 20552 Re: Proposed Rule: Payday, Vehicle Title, and Certain High-Cost Installment Loans (No. CFPB-2016-0025) Dear Ms. Jackson: This letter provides comments from trade associations representing a broad cross-section of the United States...October 7, 2016October 7, 2016 Submitted Electronically: FederalRegisterComments@cfpb.gov Ms. Monica Jackson Office of the Executive Secretary Consumer Financial Protection Bureau 1700 G Street, NW Washington, DC 20552 Re: Docket No. CFPB-2016-0025 / RIN3170–AA40 - Payday, Vehicle Title, and Certain High-Cost Installment Loans Dear Ms. Jackson, The Consumer Bankers Association (“CBA”)  appreciates the...