31
May

Choice Act Defangs CFPB: “No Authority Over PDL, Vehicle Title Loans.”

Good news for payday loan, title loan and other alternative lenders! Proceed to page 403 of the Financial Choice Act  for some interesting language relevant to those of us who fund loans:

17 ‘‘(t) NO AUTHORITY TO REGULATE SMALL-DOLLAR 18 CREDIT.—The Agency may not exercise any rulemaking, 19 enforcement, or other authority with respect to payday 20 loans, vehicle title loans, or other similar loans.’’

Additionally, the American Bankers Assn. submitted a report to Treasury Secretary Steve Mnuchin requesting CFPB’s proposed payday-lending rules be denied and asking for regulatory changes allowing banks to issue their own payday loans.

Here’s a link to HR 10 The Financial Choice Act as propsed in The House: Choice Act

And, here’s a link to the Bank Report: ABA White Paper on Small Dollar Credit