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Small Dollar Rule Rewrite Will Attempt to Address Deficiencies of Previous Rule
On Feb. 6, the Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking revisiting its controversial small-dollar rule. Consumers’ Research has raised concerns that the previous version of the rule would harm the very consumers the CFPB was intending to help.
Beau Brunson, Consumers’ Research’s Senior Policy Advisor, released the following statement on the rule’s release:
“We are pleased that the CFPB has re-opened the small-dollar lending rule for comment. The original rule would have brought substantial harm to more than 8 million consumers, many of whom are financially underserved, by cutting off their access to an important source of credit. The proposed revision reflects the bureau’s commitment to utilizing empirically-supported evidence regarding the rule’s impact on consumers to help ensure those who do not have access to basic financial services and products are not denied the credit they need.”
The CFPB finalized the original small-dollar rule on Oct. 5, 2017, with a full compliance date of Aug. 19, 2019. Last October, the CFPB formally announced that it planned to reconsider the small-dollar rule in early 2019.
Washington, D.C.— Feb. 6, 2019 – Consumers’ Research, founded in 1929, is the nation’s oldest consumer organization that seeks to increase the knowledge and understanding of issues, policies, products, and services of concern to consumers. For more information, visit: https://consumersresearch.org/ and follow Consumers’ Research on Twitter at @ConsumersFirst