What Minority Communities Are Saying About the CFPB Rule for Small-Dollar Lending

August 4
GUEST BLOG: AMY CANTU
CFSA Director of Communications

The CFPB’s proposed rule for payday and other small-dollar loans will eliminate access to credit for millions of Americans, with particularly devastating consequences for minority communities.

The CFPB has not considered the opinions of consumers across the country in its rulemaking process, including leaders of minority communities nationwide who have spoken out against the harmful regulations:

“By deciding to attack short-term lenders rather than addressing real problems impacting the financial lives of all Americans, such as the continued red-lining of minorities and double-standards for people of color applying for signature or unsecured loans that have resulted in innumerable and embarrassing of multi-million dollar fines levied against large traditional banks, the CFPB has made it clear that they aren’t listening to those who have actually grown to appreciate the benefits of short-term loans.”
Rev. Jarrett Barton Maupin Jr., Fellowship Baptist Church

 

“Hispanic consumers and businesses have been significantly impacted by the tightening of credit in the U.S. Access to credit drives consumer spending, and is absolutely essential to our members and their businesses. Indeed, a large portion of small-dollar loans are used to pay bills at small businesses, and money spent at these businesses stays within the communities, boosting local economies.”
Javier Palomarez, Hispanic Chamber of Commerce

 

“A person who is in need of a short-term loan or a small loan, banks they just won’t do it. It’s not available to people that I serve in my community, even if you have collateral, it’s not even available.”
Bishop James Tindall, Metropolitan Spiritual Church of Christ

 

“I lost one job to go back to school to become a nurse. I’m married, I had a child at that time, so with me coming back every two weeks to get that $500 cash advance, it helped me to be able to keep my home, go to school, and put food on the table.”
Katrica, Payday Loan Consumer

 

“Financial protection comes in many forms, and we must ensure that meaningful and robust safeguards exist to prevent predatory lending practices. However, the CFPB’s insistence on regulating payday loans to the point of near-extinction is not in the best interest of American consumers. Payday loans have served as a valuable safety net to countless individuals, and eliminating them outright would fail to provide financial protection to those who need it most.”
Congressman Alcee Hastings (D, FL-20)

Amy Cantu
CFSA | Director of Communications
703.842.2092 (o)
acantu@cfsaa.com (e)
www.cfsaa.com
@CFSAA

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