CFPB Rule Will Harm American Jobs And The Economy
Sept. 15, 2016
By Amy Cantu
CFSA | Director of Communications
The Consumer Financial Protection Bureau’s (CFPB) proposed rule will effectively wipe out the payday lending industry and in turn destroy thousands of American jobs. This will have disastrous repercussions for the national and state economies, and eliminate billions of dollars in important tax revenue.
As a result, millions of underserved or underbanked American consumers will be left without access to short-term credit and struggle to cope with unexpected financial hardships that arise. Thus, the CFPB’s rule will not only be detrimental to American jobs and the economy, but the very consumers it claims to protect.
Below are data points from the Economic Impact Of The Payday Lending Industry, Charles River Associates, May 2014. They demonstrate the payday lending industry’s contributions to the US economy and employment, and what could be lost as a result of the CFPB’s onerous rule:
The CFPB’s Rule Will Harm Thousands of US Jobs and the Economy
- The payday lending industry supported the employment of 70,275 people, of which 46,904 were employed directly in 19,090 storefront locations.
- The payday lending industry added about $7.1 billion in value to the US economy.
- The payday lending industry added approximately $4.6 billion to the gross state product of the states in which it operated.
- The payday lending industry contributed at least $39.6 million in local and state taxes and at least $102.7 million in federal taxes.