CBA Statement on Bureau Review of Small-Dollar Rule

October 26, 2018
Nick Simpson

CBA Statement on Bureau Review of Small-Dollar Rule

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt released the following statement after the Bureau of Consumer Financial Protection announced it would reconsider provisions of the “Payday, Vehicle Title and Certain High-Cost Installment Loans” rule as well as the rule’s implementation date:

 

“We appreciate the Bureau reconsidering the flawed small-dollar lending rule released last year. Study after study have shown about half of American families cannot cover emergency expenses. Allowing banks to operate in this space – 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. The Bureau should consider all aspects of the rule, not just the ability to repay requirements, to prevent unintended consequences for loans the original rule was not intended to cover. 

 

“Accordingly, instead of waiting to delay the implementation date of the current rule, we encourage the Bureau to immediately delay the rule until the review is complete.”

 

###

 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.