CASE Praises Reps. Stivers & Graves for Action on Small Dollar Lending Rule

CASE wishes to thank Rep. Steve Stivers (R-OH) and Rep. Tom Graves (R-GA) for helping to protect consumers’ access to credit by supporting the CFPB’s action toward rescinding the 2017 Payday, Vehicle Title, and Certain High-Cost Installment Loans rule.

As everyone is now well aware, this rule was proposed by the previous administration with the intention of putting short-term lenders out of business –88 percent by one economic analysis — which would lead to tens of millions of consumers losing access to credit during a financial crisis or unexpected shortfall.

These loans play an enormously important role in our economy and in the lives of consumers — especially the less affluent — who have no other access to credit, and overwhelmingly favor having access to these short-term loans. Reps. Stivers and Graves understand that the CFPB is taking a pro-consumer step in keeping millions of Americans from being disenfranchised and financially harmed by this original rule. We also thank them for urging the CFPB to revisit the costly, unnecessarily and harmful “payment provision” of this rule, which is not only adds additional burdens on lenders and in turns costs onto consumers, but recklessly risks more borrowers having their credit ruined by being found in default.

CASE deeply appreciates the leadership and commitment on behalf of consumers by Reps. Stivers and Graves, as well as the 25 other Members of Congress who signed-on to their letter to the CFPB. We encourage even more members to join in this effort, to protect the financial options of American consumers who most need access to credit.