Rep. Brad Sherman (D-Calif.) said while there is a role for the CFPB in addressing payday lending issues, many politicians do not understand the benefits of such loans because they do not need them.

CFPB Director Richard Cordray recently defended the bureau's involvement in payday lending during a recent House Financial Services Committee hearing.  Sherman supported the CFPB taking action on the issue.

"I think there's a role for the CFPB in payday lending. At the same time we've got to make sure we don't cut off that – see, people get involved in public affairs because they're already able to take care of their families and then they say, 'oh, I have enough extra. I can contribute to the community. I can afford to live on the measly wages Brad Sherman provides in his congressional office.' The people involved in public affairs are not people who don't have an extra $700 to fix their car," Sherman said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.