Lawmakers Request That the CFPB Consult With State Officials Before Proceeding With Its Proposed Rulemaking on Short-Term Lending

In an April 8, 2016 letter to Richard Cordray, Director of the Consumer Financial Protection Bureau (“CFPB,” or “Bureau”), Representatives Randy Neugebauer (R-TX) and Mick Mulvaney (R-SC) requested that the Bureau convene a forum of state and tribal officials to discuss their perspectives and experiences with regulating shortterm, small-dollar credit products, prior to issuance of any Bureau-proposed rule on the subject.

In the letter, Representatives Neugebauer and Mulvaney criticized the CFPB and Director Cordray for “refus[ing] to concede” that a Bureau rulemaking that sets a regulatory floor on this subject would preempt state law. Arguing that the Bureau has “ignore[d] the popular voice of states and sovereign Indian tribes that have carefully crafted laws to balance consumer protection and access to credit,” the Members of Congress requested that the Bureau host a forum to “ensure that the Bureau carefully considers the perspectives of these [state and tribal] officials as it relates to market trends, access to credit issues, and state regulatory models and experiences.”

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