We Need to Focus on Building Credit Not Destroying It
Sacramento Bee Letter to the Editor: June 21, 2019
Read the published letter by Western Bankers Association President & CEO, Steve Andrews:
“Limiting interest rates on loans for poor will only create more problems” (sacbee.com, June 14): California’s legislature is grappling with small dollar lending and the authors of this effort are trying to strike a balance between ensuring adequate consumer protections while allowing for a statutory environment for these lenders to operate. Federal regulators recently acknowledged current regulations discourage banks from offering small dollar loans and are reconsidering their policies to allow banks to offer solutions. We applaud efforts by Assemblymembers Limon and Grayson to advance a measure that adopts safeguards that prevent consumers from getting stuck in a spiraling debt trap. Pursuing reforms where these borrowers can build credit, and have the future opportunity to consider mainstream financial products, is positive public policy.
Stephen G. Andrews
Click here to access the letter online.