The steep price of the missing affordable “small-dollar loans”

first_img 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Last week, Richard Cordray, director of the Consumer Financial Protection Bureau told the Wall Street Journal, “I personally believe banks and credit unions can be low-cost providers of small-dollar loans. I think that working with banks and regulators involved, there would and should be an ability for them to offer decent products.”While this move could fuel opposition from the $38.5 billion payday-lending industry, which fears the watchdog agency’s new rule would wipe out much of its business, Cordray believes banks and credit unions should be able to offer small-dollar loans as “rescue products” for their customers.The fact that the CFPB is discussing ways to make it easier for banks and credit unions to offer “small-dollar” loans means the agency has a big interest in reining in high-interest payday loans.  This intrigues us at Filene, as we are in the midst of several years’ research into finding solutions with credit unions to increase access to affordable financial services and providing viable options to predatory practices such as payday lending.The QCash SolutionOn January 5th, in collaboration with QCash Financial, Filene launched a new Pilot for credit unions interested in offering members a fast and easy-to-use alternative to obtain small-dollar loans. continue reading »last_img

Leave a Reply

Your email address will not be published. Required fields are marked *