WASHINGTON, 5th February 2020 OLA CEO Mary Jackson made the following statement:
“Today’s hearing clearly shows that many members of the House of Representatives Financial Services Committee have even more work to do in understanding borrowers of these types of financial products, why consumers rely on them, and how satisfied they are overall.
Bank-fintech partnerships lead to more innovation and more competition in the marketplace, and offer consumers credit that suits their individual needs. This competition has resulted in better financial products at lower costs, and these partnerships benefit both small banks and consumers. These partnerships operate within the framework of federal law. Amazingly, the proposal for a national rate cap anticipates 43 state consumer finance laws and that some witnesses have complained that banking products cannot preempt state law, but they are fine with a national prepayment regime.
Consumers are satisfied with small dollar loan products, as evidenced by the fact that only one percent of all consumer complaints in the CFPB’s consumer complaint database relate to these loans.
We encourage the committee to reconsider this dangerous, restrictive policy proposal and focus on promoting measures that will help consumers gain access to the financial products they continue to seek. “
Via the Online Lenders Alliance
The Online Lenders Alliance (OLA) is the first trade association in the fintech sector. Focused on credit inclusion, OLA brings together a diverse group of innovative companies that share a common goal: to serve hardworking Americans who deserve access to trusted credit. Our members include entrepreneurs, public companies, lenders, credit bureaus, advertisers, lead generators, compliance experts, and software developers who use technology to responsibly improve consumer financial health. Consumer protection is our top priority and OLA members adhere to a rigorous set of best practices and codes of conduct to ensure that consumers are fully informed and treated fairly. For more information and to read our latest Guidelines whitepaper, which highlights how innovations in financial technology are playing a role in boosting borrowing for the approximately 100 million Americans currently falling into the non-prime lending category , please visit www.onlinelendersalliance.org.
SOURCE Online Lenders Alliance