CFPB presses banks to offer small-dollar loans

The Wall Street Journal reports:

The Consumer Financial Protection Bureau, preparing to roll out rules​aimed at reining in high-interest payday loans, is jawboning banks and credit unions to provide better alternatives for borrowers in need of small, short-term loans.

Richard Cordray, director of the watchdog agency, said it is discussing ways to make it easier for banks and credit unions to offer “small-dollar” loans. The step could put the agency on a collision course with banking regulators, who have discouraged traditional banks from offering such loans. It could also fuel opposition from the $38.5 billion payday-lending industry, which fears the new rule would wipe out much of its business.

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