Vitter: CFPB 'Payday Rule' Issued Hastily Ahead of Upcoming GAO Report on Accountability

Press Release

U.S. Senator David Vitter (R-La.), Chairman of the Senate Committee on Small Business and Entrepreneurship (SBC), today strongly criticized newly published proposed rules from the Consumer Financial Protection Bureau (CFPB) regulating certain types of payday lending markets and small-dollar loans. Vitter has been a vocal advocate in demanding more accountability and transparency within CFPB, specifically citing concerns over the agency's lack of fair consideration of potential impacts to small entities. The new proposed rule comes weeks before a Vitter-requested Government Accountability Office (GAO) report on CFPB's fairness and transparency on the "Payday rule" rulemaking process in regards to small entities is set to be released.

"Hastily proposing this new rule before reports on the CFPB's rulemaking process is set to be released shows the agency's complete disregard for transparency and accountability," said Vitter. "In the coming weeks, I'm afraid our major concerns will be realized when my requested report shows CFPB did not adequately assess the consequences of their new "Payday rule' on small businesses. The CFPB is setting a dangerous precedent for further job-killing regulatory overreach without proper oversight or input from those entities a policy directly affects."

Last year, Vitter requested a GAO study on the adequacy and thoroughness of the CFPB's analysis of small entity impacts as it relates to the "Payday rule" rulemaking process. Specifically, Vitter requested an investigation into a federally-mandated requirement that CFPB convene Small Business Regulatory Enforcement Fairness Act (SBREFA) panels to seek direct input from small businesses while crafting new rules. This report is expected to be released in the coming weeks.

Source