Sending Office: Honorable Dennis A. Ross
Sent By:
Timothy.Wilt@mail.house.gov

 

Request for Cosponsor(s)

Supported By: Community Financial Services Association of America (CFSA), Financial Service Centers of America (FiSCA), Consumer Bankers Association (CBA), Competitive Enterprise Institute (CEI), ALEC Action, National Black Chamber of Commerce, Americans
for Prosperity (AFP), Americans for Tax Reform, Council for Citizens Against Government Waste (CCAGW), American Commitment, FreedomWorks, Heritage Action, National Taxpayers Union (NTU), Taxpayer Protection Alliance, Independent Women’s Forum, Independent
Women’s Voice, Consumers’ Research

Cosponsors: Ross*, Hastings*, Stivers*, Cuellar*, Peterson*, Graves*, Huizenga, Duffy, Posey, Wagner, Williams, Lucas, Loudermilk, Norman, Walker, Faso, Rutherford, Bilirakis, Pittenger, Palazzo, DesJarlais

Dear Colleague,

We invite you to join our effort to protect millions of Americans from the harmful consequences of the Consumer Financial Protection Bureau’s (CFPB) de facto ban on short-term, small-dollar loans by cosponsoring H.J.Res 122.

As you may know, more than half of Americans do not have steady access to banking services, like checking or savings accounts. Moreover, a recent survey from GoBankingRates.com found that 34 percent of Americans do not have emergency savings capable of covering
an unexpected expense of $400, such as vehicle repairs or unexpected medical bills.

For these constituents, consumer financial products, like bank deposit advance products and payday loans, offer an important lifeline in times of need and can help ensure that an unexpected budget problem does not become a financial calamity with lifelong
consequences. Over 12 million consumers access more than $3 billion in short-term credit annually through these products, which are already regulated in one way or another by all 50 states and the District of Columbia. As you would expect, state legislatures
have worked deliberatively to balance the credit needs of their communities with the consumer protections necessary to ensure the marketplace is safe.

Unfortunately, the CFPB decided to disregard this state-based system, and implement a 1,600 page rule that is incompatible with the majority of state regulatory regimes. In its final rule, the CFPB acknowledges that the regulation would reduce the availability
of short-term, small-dollar loans by approximately 70 percent. At the same time, the CFPB failed to provide evidence of alternative products capable of serving the needs of consumers that currently rely on access to this credit option.

The CFPB’s small dollar loan rule was the product of deeply flawed research and a hurried rulemaking process, and now poses a clear and immediate danger to millions of the most financially vulnerable Americans. We urge you to cosponsor H.J.Res.122 to overturn
this rule, provide regulatory certainty to all lenders, and help protect access to credit for our constituents. If you have any further questions, or would like to be added as a cosponsor, please contact Tim Wilt at
Timothy.Wilt@mail.house.gov (Rep. Ross) or Lindsey Garber at lindsey.garber@mail.house.gov (Rep. Hastings)

Sincerely,

 

Dennis A. Ross                                                                                   Alcee Hastings

Member of Congress                                                                          Member of Congress

Related Legislative Issues
Selected legislative information: Consumer Affairs, Finance
Related Bill Information
Bill Type: H.J.Res.
Bill Type: 122
Special Note:
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