CBA Statement on FDIC Small-Dollar RFI

November 14, 2018
Allison Heimberg

CBA Statement on FDIC Small-Dollar RFI

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the Federal Deposit Insurance Corporation published a request for information on small-dollar lending programs:

 

“About half of all American families cannot cover emergency bills ranging from car repairs and medical expenses to child care. Policies in Washington have forced these consumers to rely on less-regulated lenders like pawn shops or overseas and online lenders, instead of turning to well-regulated banks to meet their unique financial needs.

 

“The banking industry stands ready to help customers facing economic hardships and the FDIC should be commended for recognizing this critical consumer need.”

 

NOTE: CBA wrote the FDIC in July 12, 2018, encouraging the agency to rescind its small-dollar loan guidance. A copy of that letter is available here. In 2013 the FDIC and Office of the Comptroller of Currency issued guidance which effectively eliminated the ability of banks to offer a viable alternative to payday lending. The OCC has rescinded its guidance and the Bureau of Consumer Financial Protection is reviewing provisions of its payday rule, which was issued last year.    

 

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