Yesterday, LSCU learned the House Appropriations Committee approved a bipartisan amendment to the Financial Services Appropriation that would postpone the Consumer Financial Protection Bureau’s payday lending proposal by a 30-18 vote, with most Democrats voting no. The postponement would be until the Bureau provides a report to Congress on the consumer impact of such a regulation.
League sources indicate it is doubtful the bill will become a law as its prospects in the Senate are doubtful. Even if the legislation does make it to the President’s desk, it would likely be vetoed.
The CFPB released its new proposed rules on payday and small dollar loans last week at a field hearing in Kansas City, MO. The document, more than 1,000 pages, includes a vast amount of information for financial organizations and lawmakers to sort through to determine the relevance of the rules. The CFPB outlined its reason for the regulations by saying loans covered in its provisions are typically used by consumers who are living paycheck to paycheck, have little to no access to other credit products, and seek funds to meet recurring or one-time expenses.