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.
October 26, 2018On Friday, October 26, 2018, the Bureau issued a press release that it is expecting to issue proposed rules in January 2019 that will reconsider the Bureau's rule regarding Payday, Vehicle Title, and Certain High-Cost Installment Loans and address the rule's compliance date. The Bureau will make final decisions regarding the scope of the proposal closer to the issuance of the proposed rules...
October 26, 2018CBA 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...
October 26, 2018Richard Hunt, president and CEO of the Consumer Bankers Association, said 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.” The payday rule covers only small-dollar loans, not longer-term installment loans. Many say the payday rule would hurt consumers who need...
October 25, 2018On Wednesday, October 25, CBA and the American Bankers Association sent a request to the Bureau of Consumer Financial Protection (Bureau) to immediately extend the compliance date of its finalized rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans (rule) in light of the Bureau’s announced review of the rule. The current compliance date of the rule is August 19, 2019. Under its...
October 24, 2018On Wednesday, October 24, 2018, the Bureau of Consumer Financial Protection issued press release announcing a settlement with Cash Express, LLC , a small-dollar lender that offers payday and title loans, as well as cash-checking services. In the consent order, the Bureau found that Cash Express violated the Consumer Financial Protection Act (CFPA) by deceptively threatening in collection letters...
September 14, 2018CBA LEADERSHIP SUMMIT DOWNLOAD Hurricane Florence: As a southerner and hurricane veteran myself, I know how threatening tropical storms can be. CBA’s thoughts and prayers are with all member banks and communities impacted by Hurricane Florence’s dangerous conditions. I know your banks are preparing to help customers as well as team members in Florence’s path. Please let us know if we can help...
September 13, 2018The Consumer Bankers Association (CBA) has endorsed U.S. Bank’s new Simple Loan product, which provides a more cost-effective option for short-term loans for consumers. “U.S. Bank’s goal is to fulfill a customer need. This program – and others like it offered by retail banks – are essential for consumers faced with financial emergencies,” CBA President and CEO Richard Hunt said. “I am...
September 11, 2018U.S. Bank’s Simple Loan Product Fills Consumer Need Small-Dollar Lending Helps Customers During Financial Emergencies WASHINGTON – The Consumer Bankers Association said U.S. Bank’s Simple Loan product, launched today, fills a critical consumer need. The program is designed to help customers faced with emergency financial needs through a clear, regulated, more affordable short-term loan. A...
August 17, 2018* This week's guest author is Nick Simpson, CBA's Vice President of Public Affairs D.C. DOWNLOAD & REGULATORY UPDATE Congressional Scheduling Update: August Recess is a time-honored tradition in D.C. as well as a great incentive for Congress to act on must-pass legislation – after all, in Washington the smell of jet fumes is a powerful tool for compromise. The House of Representatives is...Pages
CBA Comment Letter re Compliance Date of Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule