ANCHOR LEAD: The President speaks today (Thursday) on payday loans while the Consumer Financial Protection Bureau holds a field hearing in Virginia on the same topic. Brian Osuch has the details. (:60)
SCRIPT: Newsbreak, I’m Brian Osuch. The CFPB has announced plans to create new regulations for payday loans, which has some concerned that it may make it harder for consumers to get credit and harm small businesses. Community Financial Services Association CEO Dennis Shaul.
CUT: (Shaul) More than 19 million households choose payday loans each year to meet their short-term credit needs. Meanwhile, the CFPB is planning to create new regulations without doing sufficient research into how these products affect consumers’ welfare. Regulations need to be guided by data, and the CFPB is conclusion rich and research poor.
SCRIPT: CFSA represents lenders that are licensed and regulated in 35 states and follow a mandatory set of best practices that often exceed state regulations.
CUT: (Shaul) Our industry is already highly regulated, and the CFPB’s regulations must achieve the important balance of preserving access to credit with consumer protections. Consumers thrive when they have more choices, not fewer. This is why CFSA has been working at the state level to enable lenders to offer more credit options to consumers.
SCRIPT: For more information visit cfsaa.com. That’s Newsbreak from CFSA.
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