CBA Statement on CFPB Small Dollar Rule

CBA Statement on CFPB Small Dollar Rule

WASHINGTON, D.C. – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Consumer Financial Protection Bureau released a final small dollar rule:

“CBA is pleased the Bureau’s amended small dollar rule will help banks provide much needed small dollar loans to consumers in need.

“Millions of Americans live paycheck to paycheck, leaving consumers with less cushion for emergencies and fewer credit options during unprecedented times like COVID-19. This new rule will prevent more Americans from turning to less consumer-friendly alternatives to fund their short-term liquidity needs.”

NOTE: As expected, the Final Rule only addresses the 2017 Rule’s ability to repay provisions. Accordingly, the payment provisions of the 2017 Rule will move forward. However, the CFPB also issued guidance clarifying the payments provisions’ scope and assisting lenders in complying with those provisions. The Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration and the Office of the Comptroller of the Currency issued interagency guidance in May for offering responsible small dollar loans to meet short-term credit needs.

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