Today's Headlines

    CFPB Announces Senior Leadership Changes

    Consumer Financial Protection Bureau (July 20, 2016)

    The Consumer Financial Protection Bureau (CFPB) today announced leadership changes within the Bureau. The positions being announced today are: the Associate Director for Supervision, Enforcement, and Fair Lending; the Principal Deputy General Counsel; and the Deputy Chief Operating Officer.

    Chris D’Angelo will serve as the CFPB’s Associate Director for Supervision, Enforcement and Fair Lending.  Mr. D’Angelo is currently the Bureau’s chief of staff.  He joined the CFPB in June 2011 and previously served as senior advisor to the Director and as an attorney in the Office of Enforcement. 

    Richard Lepley will serve as the CFPB’s Principal Deputy General Counsel in the Office of the General Counsel in the Legal Division. For the past five years, Mr. Lepley has worked as the deputy general counsel for general law, ethics and oversight at the CFPB.

    Nellisha Ramdass will serve as the CFPB’s Deputy Chief Operating Officer. Previously, Ms. Ramdass was in charge of team operations in the Office of Technology and Innovation including serving as the acting deputy chief information officer.

    Feature – InstallmentLoansWork.com Blog

    The article below appears in the Blog area of InstallmentLoansWork.com, part of AFSA’s #OurLoansWork campaign to highlight the importance of safe, responsible traditional installment loans. You can read more blogs and get information about traditional installment loans aimed at the industry and consumers, at www.InstallmentLoansWork.com.

    Traditional Installment Loans Can Help Your Credit Score

    Sometimes, bad credit happens. If you find yourself in a situation with a weak FICO score (FICO scores are used to determine credit worthiness in 90 percent of loan decisions), you might consider strengthening your creditworthiness by taking out a small installment loan – one with a pre-determined interest rate and length of repayment – to demonstrate credit worthiness. You can not only use the loan for a major expense, but since you will repay it according to the length and terms negotiated with the lender, your credit score will improve once the loan is repaid.

    According to a recent article in Money.com, a “credit builder” loan such as an installment loan could demonstrate an improvement in your FICO score in as little as a few months, when repayments are made on schedule. In fact, an installment loan may be a better option to rebuild credit than trying to open up a credit card which may carry very high (or even variable) interest rates – creating both an additional financial burden and unpredictability. They are also better than getting a payday loan for this purpose because traditional installment loan lenders report payment history to credit bureaus whereas payday lenders do not.

    GOP Lawmakers Blindsided by Trump's Embrace of Glass-Steagall

    American Banker, Ian McKendry (July 19, 2016)

    Several high-profile Republican officials were caught off guard when party presidential nominee Donald Trump added the restoration of Glass-Steagall to the platform. The 1930’s-era law separated commercial and investment banking activities and is popular with progressive Democrats.

    "I was completely surprised," Rep. Steve Stivers (R-OH), a member of the House Financial Services Committee, said. "It was a late addition. I am not sure how it happened. I was very disappointed that that got included, because frankly I think that will make our banks more vulnerable if we try and put Glass-Steagall back in and make them more likely to fail, because they will be more focused on fewer classifications of assets."

    Stivers and other party officials noted that it may have been wise for the Trump campaign to seek more input from the banking industry and those who are involved with its regulation before including it in the platform.

    Still, some members of the GOP note, many in the party are beginning to coalesce are Donald Trump as the nominee. Party members see Trump tapping Indiana Governor Mike Pence as his running mate as a positive sign. Watchers also note that a President Trump would almost certainly reduce the number of federal regulators, or at least get to name some to places like the Consumer Financial Protection bureau (CFPB). And, a GOP win may mean that a change to how Dodd-Frank operates would have a much higher chance of becoming law.

    Coalition of State AGs Urge Congress to Limit Federal Agencies Overreach

    AFSA Staff

    On July 11, attorneys general (AGs) from 15 states (AL, AZ, AR, GA, KS, MI, MT, NV, ND, OH, SC, TX, UT, WV, and WI) sent a letter to House and Senate leadership urging them to eliminate “burdensome and illegal” regulations by strengthening the Administrative Procedure Act. The AGs voiced concerns that federal agencies are acting outside their authority by issuing binding rules in the form of guidance documents, while circumventing the notice-and-comment process; failing to consider regulatory costs; and failing to fully consider the effect of their regulations on states and state law.

    In the letter, the AGs highlighted the Consumer Financial Protection Bureau’s (CFPB) 2013 guidance defining unfair, deceptive, or abusive acts or practices for the collection of consumer debts, which has been used to impose binding requirements and sanctions in practice. The AGs also noted the CFPB’s failure to consult with states regarding their proposed small dollar loan rule, which may conflict with state laws, and pressed Congress to mandate that agencies consult with states when considering regulations that may preempt state law.

    In conclusion, the AGs urged Congress to take action to ensure federal agencies are in fact providing opportunity for notice and comment for all binding regulatory requirements, acting within their delegated authority, and always rigorously assessing the costs of their regulations.

    Possible Democratic VP Picks Push for Strict Payday Loan Rules

    Reuters (July 20, 2016)

    Sens. Sherrod Brown (D-OH) and Elizabeth Warren (D-MA) have penned a letter to Consumer Financial Protection Bureau (CFPB) Director Richard Corday arguing that the agency’s proposed small-dollar lending rules do not go far enough. Two dozen other senators signed onto the letter as well.

    The letter questioned the analysis of the CFPB’s ability-to-repay rule as well as the ability of lenders to offer consumers multiple loans or renewals. The letter also questioned the 30-day period that borrowers have to wait before taking out another loan. "We urge the CFPB to ensure that a cooling off period is long enough that borrowers can manage their expenses and are not reborrowing to service prior short-term loans," they wrote.

    The comment period for the proposed rule lasts until Sept. 14.