Small business owners urge consumer bureau to preserve and enforce the rule, protect consumers against payday lending debt trap
WASHINGTON, DC - Congressional Review Act (CRA) resolutions—S.J. Res 56 and H.J. Res 122—to repeal the Consumer Financial Protection Bureau’s (CFPB or consumer bureau) payday and car title lending rule will not advance in Congress, as their legislative clock expired yesterday. The CFPB rule, finalized in October, establishes basic consumer protections on these 300% or more interest loans, including the common-sense standard that lenders should have to verify a borrower’s ability to repay before making the loan. Consumer and civil rights advocates, including the Main Street Alliance, are urging the consumer bureau to keep intact the rule, which is set to into effect summer 2019, and to fulfill the bureau’s responsibility to enforce the law.
The CRA is a fast-track legislative tool that allows lawmakers to undo federal regulations years in the making without public hearings with a simple majority vote in both the House and Senate. If invoked, the CRA prohibits a federal agency—like the consumer bureau—from rolling out regulations substantially the same as those it reversed. Since neither chamber brought the payday rule resolutions to a vote during the limited time allotted for a CRA challenge, the important rule was not overturned.Read more
Small Businesses in Lower-income or Minority Neighborhoods are Less Likely to Receive loans than Businesses in Higher-Income or White Neighborhoods
New report focuses on small business lending landscapes in Detroit, Michigan and Richmond, Virginia
Businesses in low- and moderate-income or predominantly minority areas in Detroit, Michigan, and Richmond, Virginia, are less likely to receive small business loans than businesses in more affluent and more white neighborhoods in those metropolitan areas according to a report that Woodstock Institute released today. The report, “Patterns of Disparity: Small Business Lending in the Detroit and Richmond Regions,” examines bank lending to small businesses in those cities. It is the third in a four-part series of research reports examining small business access to bank loans in eight major metropolitan areas. The report finds:Read more
New Jersey Main Street Alliance leader Jacquie Germany, owner of Nina's Nuances Interior Design in Montclair, NJ, had a commentary published in the Washington Post on July 10 in support of financial reform and the new Consumer Financial Protection Bureau. Jacquie writes:
Small businesses have been devastated by the economic consequences of Wall Street recklessness and abusive lending, with the recession leading to small-business bankruptcies nearly doubling between March 2008 and March 2009.
And small businesses are especially hurt when dollars that our customers and prospective customers could be spending on the goods and services we offer are instead sucked away by bad mortgages, or deceptive credit cards or outrageous overdraft fees.