The Consumer Financial Protection Bureau—the federal agency charged with regulating these loans—has addressed only a small part of this market, and harmful loans from nonbank lenders may continue to flourish unless states enact sensible safeguards. Federal agencies such as the Office of the Comptroller of the Currency, the Federal Reserve Board of Governors, the Federal Deposit Insurance Corp., and the National Credit Union Administration have demonstrated increasing interest in small credit products, which could lead to wide availability of lower-cost loans from banks and credit unions, saving millions of borrowers billions of dollars.
Pew provides research, recommendations, and technical assistance to help state and federal lawmakers craft policies for a fair, safe, and affordable small-dollar loan marketplace.
