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 28, 2022
    Historically, many banks considered small-business clients a sub-set of their consumer customers, with little attention paid to what owners and entrepreneurs actually need from a financial institution. That is starting to change, partly spurred by the wave of new entrants zeroing in on the segment and the opportunities that digital channels create. Read more to learn about four key areas of...
  • September 15, 2022
    The 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 15, 2022
    The 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). The groups jointly filed...
  • September 7, 2022
    In 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, 2022
    To 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, 2022
    In 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, 2022
    This 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, 2022
    A 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-...
  • December 16, 2021
    Consumer Bankers Association President and CEO Richard Hunt today released the following statement after the Consumer Financial Protection Bureau (CFPB) issued a series of orders to collect information on the business practices of five fintech companies offering “buy now, pay later” (BNPL) credit, including: Affirm, Afterpay, Klarna, PayPal, and Zip. “It’s good to see the CFPB take this much-...
  • December 1, 2021
    Consumer Bankers Association President and CEO Richard Hunt today issued the following statement after the Consumer Financial Protection Bureau (CFPB) released new research examining overdraft and non-sufficient funds (NSF) fees among leading financial institutions: “The CFPB’s research fails to reflect the introduction of innovative products and services unveiled by America’s leading banks to...

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