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.
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. ...
February 23, 2020
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....
January 11, 2020
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