June 2, 2016 | News Releases on
Proposed CFPB Rules Restrict Access to Short-term Credit
Today the Consumer Financial Protection Bureau (CFPB) proposed new rules affecting small loan lenders across the country. “These regulations would severely restrict access to credit for thousands of American families,” said Heritage Foundation expert Norbert Michel
“This is fact-free regulation,” he said. “Not only does the CFPB lack evidence to support its claims that these lenders engage in ‘predatory behavior,’ the evidence actually suggests just the opposite."
“Thousands of Americans turn to these lenders for quick cash in times of need. They use small loans to buy small appliances, pay rent or fund emergency repairs on the family vehicle – loans that aren’t accessible through many banks. The proposed rules would severely restrict everyday Americans’ access to credit when their families need it most.
“These new rules are predicated on the belief that Americans are too dumb to make their own financial decisions; that government knows better than they do,” Michel added. “It’s ironic that an agency supposedly created to ‘protect consumers’ has decided it must protect us from ourselves—even if its protection means our families will suffer from this regulatory kindness.”
For more of Dr. Michel’s research on this issue see below:
• New Government Rule Could Make It Harder for You to Buy Furniture
• Dodd–Frank and the Consumer Financial Protection Bureau Put Squeeze on Private Payday Lenders
• Government: We Must Destroy Payday Lenders Because Americans Are Stupid