Ranking Member Requests Funding for Small-Dollar Loan Programs

January 6, 2016

On Wednesday, January 6, 2016, Senate Banking Committee Ranking Member Sherrod Brown (D-OH) sent a letter requesting President Obama fund small-dollar loan programs outlined in the 2010 Dodd-Frank Act, which would help low-income borrowers meet their financial needs as opposed to resorting to payday lenders for short-term loans.

Although the programs were authorized under Title XII of the Dodd-Frank Act more than five years ago, they never were funded. As such, Sen. Brown urged President Obama to request funding of the programs in the president’s 2017 budget proposal. “The financial system is not working for many Americans. When one in four Americans cannot access financial products with reasonable terms, it is imperative to explore solutions to ensure that the financial system is inclusive of all people. Title XII was intended to address these concerns and can potentially lead to alternatives that will enable more people to responsibly manage their finances,” Sen. Brown wrote.

CBA President and CEO Richard Hunt released a statement applauding the Senator’s recognition of consumers’ need for short-term liquidity products, and highlighting banks’ elimination of those products due to regulations from the OCC and FDIC.