CBA Statement on Bureau Small-Dollar Rule

February 6, 2019
Nick Simpson

 

CBA Statement on Bureau Small-Dollar Rule

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt released the following statement after the Consumer Financial Protection Bureau released proposed rules reconsidering provisions of the “Payday, Vehicle Title and Certain High-Cost Installment Loans” rule as well as the rule’s implementation date:

 

“We appreciate the CFPB’s reconsideration of the flawed small-dollar lending rule. Study after study has shown about half of American families cannot cover emergency expenses. Allowing banks to operate in this space – subject to sound banking practices – will prevent bank customers from being forced to rely on less regulated and more costly sources of funds like online lenders, check cashers or pawnshops.

 

“While we appreciate the CFPB’s work evaluating rules to allow banks to help their existing customers by reconsidering the rule’s overly restrictive ability to repay provisions, the Bureau should examine all aspects of the rule to prevent unintended consequences for loans the original rule was not intended to cover.

 

“One such aspect is the consumer protection carve out. The CFPB should have one consistent rule regardless of the size of a financial institution because every consumer deserves the same protections.

 

“Additionally, as proposed in a separate rulemaking, the Bureau should immediately delay not only the ability to repay provisions but also the implementation date of the entire rule in order to give lenders the necessary time to come into compliance with what is now an unclear final rule.”

 

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About the Consumer Bankers Association
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.