House Democrats and Republicans Lead Crucial Effort to Stop Unfair CFPB Payday Loan Rule

A group of House Republicans and Democrats today introduced legislation under the Congressional Review Act (CRA) to block a controversial new rule issued by the Consumer Financial Protection Bureau (CFPB). The small dollar loan rule, covering payday, vehicle title, and other high-cost installment loans, would effectively ban millions of consumers from accessing short-term, small-dollar credit. 

Daniel Press, a policy analyst at CEI, praised House Financial Services Committee members for taking the lead on this crucial issue.

“The bipartisan resolution to block the CFPB’s small dollar loan rule shows real leadership among House Democrats and Republicans to stand up for vulnerable consumers and against this unfair regulation,” said Press. “If implemented, the rule would leave millions of Americans in a real bind at exactly the time they need a fast loan to cover an urgent expense.”

The CFPB finalized its rule against payday loans in October this year, just as the bureau’s controversial Director, Richard Cordray, was preparing to leave his post. The current CFPB Acting Director is Mick Mulvaney, appointed in November by President Trump.