Newsroom

January 19, 2012

CFPB holds hearing on payday lending

The Consumer Financial Protection Bureau is holding its first field hearing today in Birmingham, Ala., where financial industry representatives, civil rights groups and bureau staff will give their perspectives on payday lending.

Today's hearing comes two weeks after the CFPB's launch of a nonbank supervision program. According to the CFPB, Alabama has among the highest numbers of payday lenders per capita in the country.

The witnesses for today's field hearing include:

Panel 1

  • Shay Farley, legal director for Alabama Appleseed;
  • Marcella Roberts, CEO of Building Alabama Reinvestment;
  • Stephen Stetson, policy analyst for Alabama Arise; and
  • Shirley Worthington, a vice president at the United Way of Central Alabama.

Panel 2

  • Kim Gardner of Cash USA;
  • Daryl McMinn, chief operations officer at Listerhill CU of Sheffield, Ala.;
  • John Owen, a senior vice president with Regions Financial Corporation; and
  • Ted Saunders, CEO of Community Choice Financial Inc.

While the CFPB focuses today on payday lending, lawmakers are looking ahead to a Jan. 24 House Oversight subcommittee hearing that will center on the appointment of Richard Cordray, the bureau's newly appointed director. The appointment, which occurred during a three-day break in Senate pro forma sessions earlier this month, has drawn criticism from Republican lawmakers, including House Financial Services Chairman Spencer Bachus of Alabama.

Cordray was nominated as the CFPB's director in July, but his confirmation has been stalled by Senate Republicans seeking structural changes at the CFPB. They called for, among other things, replacing the director of the CFPB with a five-person committee – a move supported by NAFCU.