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FEDERALhearing transcript

Congressional Hearing: Regulating Payday and Small-Dollar Loans

Original title: ENDING DEBT TRAPS IN THE PAYDAY AND SMALL DOLLAR CREDIT INDUSTRY

January 1, 2020

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The Frame

What this does

The hearing serves as a formal record of legislative inquiry into the payday lending industry, which directly influences the development of federal consumer protection laws and lending standards that affect the cost and availability of short-term credit for millions of Americans.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Payday loan consumers

These individuals are subject to the interest rates, repayment terms, and debt cycles associated with small-dollar credit products.

Financial institutions

Lenders in the small-dollar credit market are subject to the regulatory oversight and legislative scrutiny discussed during the hearing.

What changed

Last recorded activity January 1, 2020.

What's next

Next step not available in the current record.

Summary

This document is the transcript record of a 2019 House subcommittee hearing focused on the impact of payday and small-dollar lending practices on consumers. Lawmakers and expert witnesses discussed the potential for these financial products to create 's' and explored regulatory approaches to consumer protection.

Key Facts

  • The hearing was held on April 30, 2019, by the Subcommittee on Consumer Protection and Financial Institutions.
  • The primary subject was the 'debt trap' potential of payday and small-dollar credit products.
  • Eight expert witnesses provided testimony, including representatives from religious organizations, academia, financial institutions, and policy think tanks.
  • The hearing included the submission of written statements from Senator Richard J. Durbin, the Maryland Consumer Rights Coalition, and The Pew Charitable Trusts.
  • The proceedings were conducted under the 116th Congress, Serial No. 116-20.

Frequently Asked Questions

What is the purpose of this hearing?
The hearing was convened to examine the payday and industry and discuss how these financial products impact consumers, specifically regarding the risk of long-term debt cycles.
Who testified at this hearing?
Witnesses included clergy, law professors, financial institution executives, policy analysts, and individuals with personal experience as consumers.

Why It Matters

The hearing serves as a formal record of legislative inquiry into the payday lending industry, which directly influences the development of federal consumer protection laws and lending standards that affect the cost and availability of short-term credit for millions of Americans.

News Coverage

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Sponsors

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Focus on Small-Dollar Credit

The hearing highlights a concerted effort by the 116th Congress to scrutinize the intersection of high-interest lending and consumer financial vulnerability.

Connected Entities

personDiego ZuluagaWitness and Policy Analyst at the Cato InstituteMap →
personChristopher L. PetersonWitness and Professor of Law at the University of UtahMap →
personPatrick McHenryRanking Member of the House Committee on Financial ServicesMap →
personGregory W. MeeksChairman of the Subcommittee on Consumer Protection and Financial InstitutionsMap →
personReverend Dr. Frederick Douglass Haynes IIIWitness and Senior Pastor of Friendship-West Baptist ChurchMap →
personBlaine LuetkemeyerRanking Member of the Subcommittee on Consumer Protection and Financial InstitutMap →
personMaxine WatersChairwoman of the House Committee on Financial ServicesMap →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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