WASHINGTON, Jan. 21, 2016 /PRNewswire-USNewswire/ -- Earlier this week the White House issued a response to a petition signed by more than 105,000 people who asked the administration to oppose the short-term loan rules proposed by the CFPB. The petition was created by Financial Service Centers of America (FiSCA) within the White House's "We the People" petition portal. If enacted, the rules would make it nearly impossible for consumers to access small loans that are currently permitted by most states and relied upon by millions of Americans.
"The White House response was disappointing because it ignored the concerns expressed by the more than 100,000 customers who signed the petition," said Edward D'Alessio, Executive Director of FiSCA. Those concerns included unrealistic limitations on borrowing that don't consider their real life, day-to-day needs; the creation of a federal database that will track their personal finances and dictate when they are allowed to get a loan; and denial of their financial freedom. These consumers objected to the fact that they are being singled out, and that the rules will apply only to those that use small loan products like payday loans. No other group of borrowers is being treated this way. Instead of responding to these concerns, the White House provided a regurgitated political message focused on "business models" and a financial crisis that had nothing to do with small loans or the Americans who use them.
The White House response was, however, encouraging in its report that the CFPB is conducting a "thorough analysis" of this issue and that the determination of whether to move forward with these rules is the CFPB's, "if they do move forward." "We feel this may reflect the recognition that additional research is necessary before promulgating rules, a view recently advanced by a researcher from the New York Federal Reserve," D'Alessio said. "We also urge the CFPB to look more closely at the products available under state law, which provide an appropriate balance between consumer protection and access to credit, and allow consumers to make their own financial decisions."
FiSCA is a national trade association representing the Financial Service Center industry. FiSCA members offer a wide array of necessary financial products and services to tens of millions of Americans each year in accordance with state and federal law. Additional information about FiSCA is available at www.fisca.org.
SOURCE Financial Service Centers of America