November 14, 2019 | Access to Credit
The Community Financial Services Association of America (CFSA) Chairman D. Lynn DeVault today released the following statement on the Consumer Financial Protection Bureau report “Financial Well-Being by State,” which highlights that tens of millions of Americans would struggle to come up with $2,000 for an unexpected expense:
"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. 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.
“Instead of seeking to regulate these products out of existence, as it tried to do in the past, we encourage the CFPB to work to ensure that all Americans have access to legal and licensed sources of credit in their communities. As the CFPB reconsiders its small-dollar lending rule, we hope it takes the needs and realities of these consumers into account.”