CFSA and its members support the concept of a federal rule that would provide regulatory certainty by leveling the regulatory playing field to provide families with the tools to make sound short- and long-term economic decisions. However, in October 2017 the CFPB finalized a small-dollar lending rule that will only serve to harm American consumers by taking away their access to small-dollar credit.
CFSA vehemently disapproves of the CFPB’s proposed rule because it will effectively remove small-dollar loans as a credit option and provide no financial alternative to the tens of millions of Americans who use this form of credit.
CFSA has been and remains ready to work with the federal government, including the CFPB, on sensible and thoughtful regulations. Such proposals should consider the views of consumers and their financial needs, the regulatory experience of the existing state and local laws regarding small-dollar credit, and input from the small-dollar lending industry.
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. ...
November 14, 2019
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August 29, 2019