The Pew study findings are consistent with what recent studies by the American Bankers Association and the FDIC have also shown: consumers have very limited short-term credit options, are looking to traditional payday loans for help, but want more choices to meet their short-term credit needs.
OLA and its member companies are striving to address the increased consumer demand through innovation and industry-leading best practices that protect consumers. OLA supports a federal charter for short-term lenders that will create nationwide regulations for the industry, increase consumer access to credit and foster innovation to create longer-term credit products.
The Online Lenders Alliance (“OLA”) submitted this comment letter in response to the Proposed Guidance on Deposit Advance Products. For the reasons outlined in the letter, OLA opposes the Proposed Guidance and urges that the Proposed Guidance be withdrawn.
OLA submitted a comment letter responding to the CFPB 's Proposed Trial Disclosure Policy. Although the letter addresses the Proposed Policy and makes recommendations for improvement, the focus is on APR and how APR is an ineffective and misleading measure of the cost of a short-term loan.