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Sep 27

Small-Dollar Loans: How the Latest Rules from the CFPB Are Likely to Harm Millions of Consumers

The Consumer Financial Protection Bureau (CFPB) has issued its proposed rule for “Payday, Vehicle Title, and Certain High-Cost Installment Loans.”  The proposal is open for public comments until October 7, 2016. The rule covers loans with a term of 45 days or less, as well as some loans with a term greater than 45 days, provided that they (1) have an “all-in” annual percentage rate greater than 36 percent; and (2) either are repaid directly from the consumer’s account or income or are secured by the consumer’s vehicle.  The rule identifies it as an abusive and unfair practice for a lender to make such a loan without first reasonably determining that the consumer has the ability to repay the loan.  The proposed rule is written in a manner that will likely force many lenders to stop offering these small dollar loans.

More About the Speakers

Keynote Remarks by
The Honorable David Vitter (R-LA)
United States Senator

Followed by a Panel Discussion with
Bill Himpler
Executive Vice President, American Financial Services Association

Doyle Bartlett
Co-Founder, The Eris Group

Andrew Morrison
Executive Vice President and Director, Brundage Management Company, Inc.

Hosted By

Norbert J. Michel, Ph.D. Norbert J. Michel, Ph.D.

Research Fellow in Financial Regulations Read More