FOR IMMEDIATE RELEASE
ICBA Statement on New Military Consumer Lending Rules
Washington, D.C. (Aug. 31, 2007) — Karen Thomas, executive vice president and director of government relations of the Independent Community Bankers of America (ICBA), issued the following statement upon release of the Department of Defense (DoD) regulations covering pay day, vehicle title and refund anticipation lending.
“ICBA appreciates that the new rules leave the door open to exempt depository institutions if the definition of consumer credit changes. We’re pleased that DoD considered in its deliberations that community banks are closely-regulated, highly-supervised depository institutions and are part of the solution to help meet the credit needs of the nation’s service members and their families.
The DoD took an important step to avoid unintended consequences that could have unduly restricted credit for men and women in uniform. Community banks are regularly examined by their federal supervisors and the banks take appropriate steps to make sure they carefully follow the many laws and regulations that protect all consumers. By adopting a narrow definition of consumer credit, the new rules target predatory practices, while allowing community banks to continue to develop and provide affordable small-dollar loans at reasonable prices.”
The Independent Community Bankers of America, the nation’s voice for community banks, represents 5,000 community banks of all sizes and charter types throughout the United States and is dedicated exclusively to representing the interests of the community banking industry and the communities and customers we serve. For more information, visit www.icba.org.