House Committee to weigh legislation to tighten payday lending

One piece of the legislation would create an Office for Under-Banked, Un-Banked and Underserved Consumers in the CFPB.

In the face of the CFPB’s plan to loosen rules governing so-called payday loans, the House Financial Services Committee plans to explore legislation that would tighten the regulations, according to a memo produced by the Democratic staff of the committee.

The Financial Services Committee is holding a hearing on payday lending Tuesday afternoon.

“Many payday and car-title loans not only undermine wealth-building opportunities for vulnerable communities, but also force people that are already struggling financially and underbanked into worse circumstances, including losing their bank accounts, vehicles, or even bankruptcy,” the Democratic memo states.

In 2017, the CFPB, under Obama Administration appointee Richard Cordray, the bureau issued strict rules governing payday loans. When President Trump took office, administration officials said they would loosen the regulations.


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