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For Immediate Release
February 6, 2019
ABA Media Contact: Mike Townsend
(202) 663-5471 
Email: mtownsend@aba.com 
Follow us on Twitter: @ABABankers

ABA Statement on CFPB’s Small-Dollar Rule Proposal

Statement by Virginia O’Neill, senior vice president of ABA’s Center for Regulatory Compliance

​“The Bureau’s proposal to revise its small-dollar lending rule is a step in the right direction toward allowing banks to more fully meet consumers’ small-dollar credit needs. Many consumers rely on small-dollar loans, and regulators and others widely agree that banks are an important source of fair and convenient small-dollar credit. We are encouraged that the proposal eliminates burdensome and prescriptive underwriting requirements, and that it maintains the exemption for depository institutions that make small-dollar ‘accommodation loans’ to meet the short-term credit needs of their customers.
 
“We continue to review today’s proposal to determine how it will impact our members and whether it will allow banks to better serve their customers. We are hopeful that the Bureau will consider additional measures to remove regulatory barriers that curtail banks’ ability to serve consumers’ short-term, small-dollar needs. We look forward to working with the Bureau to build upon the positive elements in this proposal and to allow banks to develop a diverse range of short-term credit products that expand consumers’ access to this credit.”
 
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The American Bankers Association is the voice of the nation’s $17.5 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13.5 trillion in deposits and extend nearly $10 trillion in loans.