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.
  • August 10, 2018
    On Friday, August 10, 2018, the Bureau issued a press release regarding a federal district court in the Western District of Missouri that entered an Order effectuating a settlement between the Bureau and Richard Moseley, Sr., Richard Moseley, Jr., and 20 interrelated corporate entities controlled by Moseley, Sr. and Moseley, Jr., in the Bureau’s lawsuit regarding the unlawful origination and...
  • August 9, 2018
    Bloomberg Law August 9, 2018 Banks May Need More Than Trump Push to Offer Small-Dollar Loans By Evan Weinberger It may take more than encouragement from the Trump administration for banks to re-enter the market for small-dollar loans after a five-year absence. Concerns over profitability and shifting political winds could keep banks on the sidelines even though the Treasury Department and the...
  • August 8, 2018
    On Wednesday, August 8, 2018, a Texas federal judge again turned down a request from the Bureau and two payday lender trade groups to stay the August 2019 compliance date of the agency’s so-called payday rule. U.S. District Judge Lee Yeakel declined Tuesday to reconsider his June order that stayed a lawsuit challenging the rule , nor did he stay the rule’s compliance date.
  • July 31, 2018
    On Tuesday, July 31, 2018, the Treasury Department released a report on Fintech and Innovation, issuing broad and specific recommendations to empower consumers and to facilitate innovation in the U.S. financial system. This is the fourth report from Treasury as part of its effort to implement the President's Executive Order on Core Principles for Regulating the United States Financial System. In...
  • June 1, 2018
    My Visit to Huntington Bank – I always enjoy visiting with CBA members and this week I had the pleasure to meet with the folks at Huntington Bank. First and foremost, they are a great group of bankers who work tirelessly on behalf of their customers. We had a lively discussion on the regulatory environment, small-dollar rulemaking, M&A activity and bank innovation. I was glad CBA Board Member...
  • May 25, 2018
    BIG WEEK FOR BANKING IN CONGRESS Congress’ Buzzer Beater – With the Memorial Day shot clock winding down, the House of Representatives passed a good, commonsense and bipartisan regulatory reform bill (S. 2155). The bill will help many U.S. banks invest in their communities, workforce and infrastructure. While the legislation makes some meaningful reforms, there is still more to be done. Going...
  • May 23, 2018
    Regulator Presses for Revival of Small, Short-Term Loans Trump-appointed regulator wants bank to start making riskier loans to compete with payday lenders
  • May 23, 2018
    WASHINGTON – The Consumer Bankers Association today welcomed a bulletin issued by the Office of the Comptroller of Currency (OCC) encouraging banks to offer responsible short-term, small-dollar loans to their customers. Prior agency guidance had discouraged certain types of small-dollar loans and after it was rescinded banks were not certain whether they were able to reenter the market...
  • May 23, 2018
    The Office of the Comptroller of the Currency (OCC) on Wednesday pushed U.S. banks to offer short-term loans to customers with troubled credit histories, a practice shunned by the regulator five years ago. The OCC announced a new policy on short-term, small-dollar loans Wednesday meant to encourage banks to compete in a space now dominated by storefront “payday” lenders with high-interest rates...
  • May 11, 2018
    DRIVING THE CONVERSATION Rumor Mill Churns: McWatters as Bureau Director? – There is plenty of buzz in D.C. surrounding President Trump’s potential nomination of National Credit Union Administration Board Chair Mark McWatters as the next Director of the Bureau of Consumer Financial Protection (Bureau). We have had conversations with McWatters, as well as many other potential candidates for the...

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