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 20, 2023In a new letter sent today, eight leading financial groups representing virtually all banks and credit unions voiced their opposition to the Capping Credit Card Interest Rates Act, a misguided proposal from Senator Josh Hawley (R-Mo.) that would impose government price controls on credit cards and effectively harm the very people the legislation seeks to protect. As outlined in the letter, Sen...
September 11, 2023The Consumer Bankers Association and the Bank Policy Institute (“the Associations”) addressed misconceptions surrounding medical payment products in a letter today to the Consumer Financial Protection Bureau, the Department of Health and Human Services and the U.S. Treasury Department (“the Agencies”). The Agencies issued a request for information in July that wrongly asserts that “medical...
September 7, 2023In a new letter sent to the Consumer Financial Protection Bureau (CFPB or Bureau), the Consumer Bankers Association (CBA) highlighted the important use of information – that the Bureau may define as ‘credit header data’ – by banks for identity verification and fraud prevention. The letter also details the ways in which these consumer protection measures by banks may be impacted by defining this...
September 15, 2022The market for personal loans is massive and growing, yet the fintechs and other non-bank lenders who make such loans are not subject to regular oversight by the Consumer Financial Protection Bureau (CFPB), which has “created an unlevel playing field and a large risk to consumers,” write the Consumer Bankers Association (CBA) and the Center for Responsible Lending (CRL). Today, the groups jointly...
September 7, 2022In a new analysis released yesterday, the global intelligence firm Curinosexamined the impact of bank-led innovations on the rapidly evolving overdraft marketplace. The updated study accounted for the growing number of banks who have implemented and pledged overdraft reforms since the firm first evaluated the state of the overdraft market in the U.S. late last year. Commenting on the key findings...
August 19, 2022To whom it may concern, The undersigned Associations appreciate the opportunity to comment on the Federal Deposit Insurance Corporation’s notice of proposed rulemaking to increase initial base deposit insurance assessment rates by 2 basis points until the Deposit Insurance Fund (DIF) achieves the FDIC’s long-term goal of achieving a Designated Reserve Ratio (DRR) of 2 percent of insured deposits...
June 13, 2022In a new letter sent today to the House Committee on Financial Services, Consumer Bankers Association (CBA) President & CEO Richard Hunt reiterated longstanding opposition to H.R. 4277, legislation that would restrict access to overdraft for millions of hardworking families who knowingly use and value the product. In the letter , CBA also highlighted the recent bank-led overdraft innovations...
February 24, 2022This morning, Citigroup became the latest bank to announce sweeping changes to their overdraft policies, joining a growing share of CBA members who have unveiled innovative overdraft solutions to meet evolving consumer demands. As a result, families now benefit from the ability to choose a financial institution within the highly competitive banking industry that offers the financial tools that...
February 9, 2022A new study from PYMTS and Amount, a leading financial technology provider, found an overwhelming majority of buy now, pay later (BNPL) users would prefer using a version of the service through their bank, rather than through a fintech provider. The study, based on a survey of more than 2000 U.S. consumers, also concluded banks have a unique opportunity to increase their market share in the fast-...
Bank and Consumer Groups Petition CFPB for Oversight of Non-bank Personal Loans