ICBA Statement on CFPB Final Small-Dollar Lending Rule ​

Oct 05, 2017
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Washington, D.C. (Oct. 5, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine today issued the following statement on the Consumer Financial Protection Bureau’s final rule on payday, vehicle title and certain high-cost installment loans, commonly known as small-dollar loans.

“ICBA appreciates that the bureau’s rule recognizes community banks as responsible lenders that do not engage in abusive lending practices and work with their customers to establish favorable loan terms that reflect their customers’ financial history and ability to repay.

“While ICBA has not fully reviewed the 1,700-page rule, the bureau has exempted thousands of community banks from the onerous full-payment test or the principal-payoff option, consistent with ICBA’s recommendation. Any lender that makes 2,500 or fewer covered short-term or balloon-payment small-dollar loans per year and derives no more than 10 percent of its revenue from such loans is excluded from these requirements.

“This exemption will enable community banks the flexibility to continue providing safe and sustainable small-dollar loans to the customers who need it most. This exemption acknowledges that community banks offer an invaluable and financially sound service to customers that should not be hindered or restrained.”

About ICBA
The Independent Community Bankers of America®, the nation’s voice for more than 5,700 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at