CBA Applauds CFPB Payday Rule Compliance Delay
CBA Applauds CFPB Payday Rule Compliance Delay
WASHINGTON – The Consumer Bankers Association today commended the Consumer Financial Protection Bureau’s official 15-month delay of the underwriting provision in its 2017 payday rule. CBA has previously advocated for a delay of the entire rule, noting the level of underwriting required for these loans is not effective or cost-efficient for small-dollar, short-term lending.
“We appreciate the Bureau’s reconsideration of the flawed small-dollar lending rule released in 2017,” said CBA President and CEO Richard Hunt. “Allowing banks to help customers cover emergency expenses – subject to sound banking practices – will prevent bank customers from being forced to rely on less regulated or unregulated sources of income like online lenders, check cashers or pawnshops.
“Today’s finalization of the delay of the mandatory underwriting provision is a helpful step in the right direction as banks work to better serve the financial needs of customers and helps recognize the unique nature of small-dollar, short-term lending products.”
A copy of CBA’s most recent letter is available here.
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About the Consumer Bankers Association:
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.
