Recently, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray falsely claimed in testimony before the House Financial Services Committee that people in the 14 U.S. states that do not provide small-dollar lending "seem to get by just fine." Director Cordray’s statement, and the CFPB’s own actions, again prove that the bureau prefers its ideologically-driven activist agenda to facts.
Independent data and academic research have repeatedly disproven the myth that consumers living in states without small-dollar lending are better off. In fact, data and research have repeatedly shown that American consumers value their access to small-dollar loans and face worse financial prospects when small-dollar loans are not available...
...The bureau attempts to peddle its agenda without any understanding of, or attention to, the data, marketplace, financial options, or concerns of consumers who use small-dollar loans. While they argue that borrowers have access to an array of financial products, such as those offered by banks or credit unions, the reality is that consumers are largely shut out of the traditional financial system.
Read the full article here.