Indiana Attorney General Greg Zoeller testified before the U.S. House Subcommittee on Financial Institutions and Consumer Credit Thursday in opposition to new rules proposed by the Consumer Financial Protection Bureau that would preempt state authority to regulate small loan lending and consumer access to credit.
Zoeller testified before committee members on Indiana’s work crafting state-specific regulations that give Hoosiers access to credit while not inadvertently driving them to unregulated, unsafe loan products.
“Like other states, Indiana has worked hard to strike this balance between access to credit and protections against predatory lenders,” Zoeller said in his testimony to the subcommittee. “The proposed federal regulations would throw this balance off and reduce access to short-term loans for the people in my state and others who need this type of financial assistance the most and who need it from reputable lenders.”
He said the CFBP’s proposal would create a vast regulatory framework at a national level that would undermine years of state efforts to regulate the industry.
Zoeller and other state attorneys general sent letters to the bureau sharing their concerns after the CFPB proposed the regulatory framework in March 2015.