WASHINGTON, Nov. 1, 2018 /PRNewswire/ -- The Financial Service Centers of America (FiSCA), the oldest trade association representing the Financial Service Center industry, offered the following statement on the Bureau of Consumer Financial Protection's (BCFP) announcement that it will in January of 2019 issue proposed rules to reconsider its Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule, as well as address the rule's August 2019 compliance date.
"We applaud Acting Director Mick Mulvaney and his team for taking steps to reconsider the harmful Small-Dollar Loan Rule," said FiSCA Executive Director Ed D'Alessio. "With the August 2019 compliance date quickly approaching, many of our members and their customers have been in a state of limbo when it comes to undertaking the systemic and other significant and costly changes to comply with the existing rule, and about having access to badly needed credit. This announcement eases some of those concerns."
"The bureau's intention to extend the compliance date and revisit the ability-to-repay provision is an appreciated step in providing businesses and consumers the certainty they require," continued D'Alessio. "The ability-to-repay provision is the portion of the rule that, should it go into effect, would have the largest impact upon both the industry and the very consumers the Bureau is charged to protect," explained D'Alessio. "This provision would drastically cut into industry revenues, leading to the shuttering of many financial service center locations and creating an absence of available credit and financial options for millions of hard-working Americans."
"Our members represent a segment of the financial services market that, left unfilled, will leave millions of Americans without access to the wide variety of necessary financial services we provide, including access to much needed credit. The value we provide was recognized in the recently released report from the U.S. Treasury Department, which examined non-bank financial institutions. We look forward to working with the BCFP as they reconsider this rule and extend the existing compliance date early next year."
Formed in 1987, FiSCA is a national trade association representing the Financial Service Center (FSC) 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.
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SOURCE Financial Service Centers of America