Report finds that payday lenders circumvent state laws

On June 16, the House Financial Services Committee Democratic staff released a report emphasizing the need for strong and effective federal regulations and consumer protections. The report, which is titled “Skirting the Law: Five Tactics Payday Lenders Use to Evade State Consumer Protection Laws,” gives credence to arguments that state-level regulation of the payday and small-dollar lending industry fails to provide sufficient protections for consumers. The report highlights various tactics that lenders employs to circumvent state laws. Specifically, the report offers several examples of measures lenders have taken to avoid compliance with state regulations: 

Director Cordray testifies before Senate Banking Committee

On April 7, 2016, the Senate Banking Committee held a hearing on the Consumer Financial Protection Bureau’s Semi-Annual Report to Congress and featured testimony from CFPB Director, Richard Cordray. This hearing followed Director Cordray’s appearance before the House Financial Services Committee in March, but unlike the House hearing, exchanges between Republican Senators and Director Cordray remained civil despite vehement disagreement on a number of issues.