In an op-ed in Insider Advantage, Dr. Charles Steele Jr., President and CEO of the Southern Christian Leadership Conference – a national organization with a long history of fighting for social, economic and political justice – recounts the numerous times well-intended regulations – similar to the Bureau’s short-term loan rule – have led to unintended consequences for Americans who the government aims to protect.
- "According to the CFPB’s own estimates, residents in under-served and minority communities will be disproportionately impacted by the proposed rule. Non-bank lenders in these communities stand to lose up to 84 percent of their revenue, which would likely put two out of every three out of business. Financial difficulties and the need for a source of credit, however, will not disappear."
The CFPB fails to listen to the voice of consumers – as evidenced by its own consumer complaint database – and instead has based its rule-making agenda on flawed data and political ideologies. With this rule, the Bureau will leave millions of Americans without a reliable source of short-term credit, and will push them into unregulated, often costlier options.
Read the full article here.