Access to Credit
As the U.S. economy continues its recovery, many Americans continue to have difficulty making ends meet, with tens of millions of families estimated to be living paycheck-to-paycheck. A recent Federal Reserve report found that nearly half of the people surveyed said they could not cover a hypothetical emergency expense of $400. This is a widespread problem, as 45% of Americans either experienced a major unexpected expense over the past 12 months or had an immediate family member who had an unexpected expense. Yet for millions nationwide, accessing credit remains a challenge.
For years, tens of millions of Americans have relied on small-dollar loans to weather unexpected financial hardships such as medical bills or car repairs. In fact, 94% of small-dollar loan borrowers consider obtaining such loans to be a sensible decision when they are faced with unexpected expenses. Small-dollar loans are often the least expensive option for consumers, particularly compared to bank fees – including overdraft protection and bounced checks – or unregulated offshore internet loans and penalties for late bill payments.
In The News: Listen to History, Borrowers to understand impact of proposed rate caps
February 23, 2020 | CFSA Commentary
By D. Lynn DeVault
When developing policy, it’s common sense to listen to those who stand to be the most impacted. Yet attempts to enact a 36 percent annual interest rate cap on short-term, small-dollar loans are being guided by outside interest groups with little regard for the consequences or the financial realities of many Americans. ...
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In The News: Not All Small-Dollar Lenders Are The Same
January 11, 2020 | CFSA Commentary
In 2020, the CFPB and Congress should work to protect access to licensed and regulated lenders and focus on tackling the very real problem of unlicensed, unregulated, illegal or otherwise unscrupulous lenders trying to take advantage of Utahns....
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CFSA Statement on New CFPB Report on Financial Well-Being by State
November 14, 2019 | Press Releases
It is not surprising to see that nearly 57 percent of Americans would struggle to bridge a financial gap or pay an unexpected expense of $2,000. One of the many reasons millions of Americans choose to use small-dollar loans every year is to bridge financial gaps. ...
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Introducing The Inside Credit Conference | Register Now
August 29, 2019 | Access to Credit
Inside Credit is a conference for lenders, financial services experts and thought leaders to collaborate on innovative solutions to meet the unique credit needs of underserved communities. Register now!...
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CFSA Statement on New CFPB Small-Dollar Lending Rule
February 6, 2019 | Federal & CFPB Regulations
We are pleased by today’s announcement that the CFPB is proposing to rescind part of its 2017 final rule and to delay the compliance date. These rulemakings are good first steps, and we appreciate that the CFPB has recognized some of the critical flaws of the final rule as promulgated during former Director Richard Cordray’s tenure. ...
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Statement on Confirmation of Kathy Kraninger as BCFP Director
December 6, 2018 | Federal & CFPB Regulations
CFSA congratulates Kathy Kraninger on her confirmation as BCFP Director. The BCFP deserves a Director who will listen to consumers and rely on unbiased data and research to guide its work. ...
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