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Congressional committee hears testimony on maintaining short term lending

Congressional committee hears testimony on maintaining short term lending

Today, a Congressional committee will hear important testimony about maintaining the ability of consumers to continue to have access to short term loans.

The Consumer Finance Protection Bureau (CFPB), an agency that wants to saddle the short-term lending industry and its customers with stifling and unnecessary regulations, is trying to push new rules that could severely impact the ability of millions of Americans and hundreds of thousands of Ohioans to procure short-term loans.

This afternoon in Washington, a U.S. House Financial Services subcommittee is expected to grill a top CFPB official about the attempt to curb the availability of short-term loans. Republicans on the committee are particularly concerned about the CFPB’s attempts to push borrowers toward banks, which many consumers shun due to high-costs, overdraft fees and other burdens.

“(These services) are inconsistent with current models of retail banking that depend on streamlined self-service and electronic transactions,” Dennis Shaul, chief executive of the Community Financial Services Association of America, told Payments.com.

In 2008, only 31 banks in the entire country offered loans smaller than $2,500, according to the FDIC.

Read more at Payments.com, and check back here for an update on the committee hearing.

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