Advance America Testifies Before California State Senate Committee
The Consumer Financial Protection Bureau (CFPB) – the federal agency responsible for regulating a wide variety of financial products and services – recently released an outline of new rules it is considering for short-term loans, including cash advances, auto title loans, deposit advances and some installment loans. On May 6, the California State Senate Banking and Financial Institutions Committee held a hearing to solicit feedback on the proposed rules from consumer advocates and industry representatives, and to discuss the rules’ potential impact on California consumers, businesses and the state economy. Carol Stewart, senior vice president of Government Affairs for Advance America, testified before the committee to explain the critical need to preserve consumers’ access to short-term credit:
“In their consideration of further restrictions on consumer credit, including payday loans, the CFPB and its supporters have failed to address the most critical question: If these rules are implemented, what happens when a consumer with an urgent financial need walks into Advance America, or another payday lending center, and can’t get the credit they need when they need it? Whether they are dealing with medical expenses, car repairs, or just an unexpected cash shortfall before their next paycheck, consumers cannot predict the financial challenges they may encounter in a year, especially in our current economy and constricted credit market.”
Video of Advance America’s testimony begins at 1:39:00: http://bit.ly/1IHRFJu.