Representative Jeb Hensarling, a Republican from Texas and chairman of the House Financial Services Committee. Photographer: Andrew Harrer/Bloomberg
The House Financial Services Committee on Wednesday will mark up several bills, including HR 4861, which would provide banks and credit unions an exemption from the CFPB's payday lending rules.
The bill, sponsored by Rep. Trey Hollingsworth (R-Ind.), would require each of the federal banking and credit union agencies to issue its own rules establishing standards for short-term lending.
Credit unions already have an exemption from the CFPB rules if they use the standards specified in the NCUA's Payday Lending Alternative program.
The CFPB has issued rules that are intended to rein in the payday lending industry, which critics say charge high fees and high interest rates—locking the borrower into taking out several loans.
Acting CFPB Director Mick Mulvaney has pledged to revise those rules, which were issued by former Director Richard Cordray.
The Financial Services Committee will mark up several other bills on Wednesday.
The committee and the Senate are jockeying over what will ultimately be included in a Dodd-Frank overhaul package. The House has passed Financial Services Chairman Jeb Hensarling's (R-Texas) Financial CHOICE Act, parts of which Senate Republicans would not be able to get passed in that chamber.
The Senate last week passed its own Dodd-Frank overhaul measure, which is far more modest than the House measure.
Meanwhile, the Financial Services Committee has been working through a series of smaller bills, in the hope that the Senate might accept some of those measures.
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