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.
  • 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...
  • November 30, 2021
    Consumer Bankers Association (CBA) President and CEO Richard Hunt today released the following statement in opposition to legislation re-introduced by members of the House of Representatives which would limit consumers’ access to credit by imposing an arbitrary cap on interest rates, harming low- and moderate-income communities most: “For millions of American families, small dollar loans, credit...
  • October 4, 2021
    Director Chopra: The Consumer Bankers Association (CBA) congratulates you on your confirmation as the Director of the Consumer Financial Protection Bureau (Bureau). CBA has worked with every Director since the Bureau’s inception to champion the consumer benefits of retail banking and advocate for sound banking policy. CBA welcomes the opportunity to work with you to advance the Bureau’s mission...
  • July 29, 2021
    WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today released the following statement in opposition to legislation re-introduced by U.S. Senators Jack Reed (D-RI), Jeff Merkley (D-OR), Sherrod Brown (D-OH), and Chris Van Hollen (D-MD) which would limit consumers’ access to credit by imposing an arbitrary 36% rate cap on consumer loans: “As the nation grapples with the...
  • July 29, 2021
    WASHINGTON – Testifying before the U.S. Senate Banking Committee today, Consumer Bankers Association General Counsel and Senior Vice President, David Pommerehn, said imposing a new cap on interest rates would threaten consumers’ access to affordable credit, harming low- and moderate-income communities most. Pommerehn prepared the following remarks for delivery ahead of Thursday’s hearing :...
  • July 28, 2021
    WASHINGTON – Consumer Bankers Association General Counsel and Senior Vice President, David Pommerehn, will testify before the Senate Banking Committee on Thursday on the shared goal of protecting and expanding consumers’ access to affordable credit, and how proposals to arbitrarily impose interest rate caps would stifle those efforts, ultimately harming individuals and families. Ahead of Thursday...
  • June 30, 2021
    WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today released the following statement in opposition to the Overdraft Protection Act, legislation re-introduced by Rep. Carolyn Maloney (D-NY) that threatens consumers’ access to safe and secure short-term liquidity: “Many customers who choose to participate in an overdraft program view it as a valuable service that enables...

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