mr. neugebauer: slide two, please. can you list the states that have laws in place that have contributed to the problem that you have identified? which states have failed to protect their citizens? mr. cordray: what i can say is, as you indicated, approximately 37 states or so that allow some form of payday lending with different degrees of regulation. and our study that analyzed millions of such transactions nationwide showed that repeatedly in this business, across the country, many consumers fall into the debt trap, more than half of the loans are made to people -- with 10 or more loans in a row. mr. neugebauer: which states are allowing the debt trap? mr. cordray: all the areas, all the states that were examined in the study. mr. neugebauer: do you have a list of those states? mr. cordray: it would be all the areas where payday lending is authorized. mr. neugebauer: you looked at all the states? mr. cordray: we looked at millions of transactions nationwide in every state. mr. neugebauer: so you mentioned there's a f

mr. neugebauer: slide two, please. can you list the states that have laws in place that have contributed to the problem that you have identified? which states have failed to protect their citizens? mr. cordray: what i can say is, as you indicated, approximately 37 states or so that allow some form of payday lending with different degrees of regulation. and our study that analyzed millions of such transactions nationwide showed that repeatedly in this business, across the country, many consumers fall into the debt trap, more than half of the loans are made to people -- with 10 or more loans in a row. mr. neugebauer: which states are allowing the debt trap? mr. cordray: all the areas, all the states that were examined in the study. mr. neugebauer: do you have a list of those states? mr. cordray: it would be all the areas where payday lending is authorized. mr. neugebauer: you looked at all the states? mr. cordray: we looked at millions of transactions nationwide in every state. mr. neugebauer: so you mentioned there's a f

mr. neugebauer from texas had with you about the interplay between federal regulation and state regulation. i think mr. nuge becauser is asking you specifically about some of your proposed rules on short-term, what people call payday lening aened how it interacts with state action in the same field. during the questioning, seriously, despite what you may think , in this particular circumstance i'm not trying to put words in your mouth but i think -- mr. cordray: i always take your comments at face value. mr. mulvaney: you said you -- mr. neugebauer asked you which states, you said all 37 that still allow payday lending, so i'll ask the question again and see if we get a clean answer. if your research as you prepared to produce these new rules on short-term lending, which states have you determined have failed to protect consumers? mr. cordray: maybe i wasn't clear in trying to respond to the question before, that's not how we approach the issue. it's not my job to control states or tell state officials what to do. it is my job -- mr. mulvaney: that's fair. mr. cordray: but it is my job to

mr. neugebauer, for two minutes. mr. neugebauer: thank you, mr. chairman. i want to use this opening statement to address an issue that director cordray raised himself in speaking before the consumer bankers association conference a couple of weeks ago. in speaking before the group of bankers he highlighted the virtues of bringing market changing enforcement actions instead of going through a transparent and formalized rule making process. some call this practice regulation by enforcement. further he critiqued his critics saying their concerns were misguided. after hearing these comments i feel it necessary to respond. businesses of all sizes deserve certainty. from the largest financial institution to the three-office title lender, regulatory risk drives up cost and stunts economic growth. federal agencies that are authorized to even force federal law take appropriate action when they hold unlawful actors accountable. however when they routinely bring enforcement actions instead of bringing rule making with the sole purpose of changing market behavior it b

mr. neugebauer from texas had with you about the interplay between federal regulation and state regulation. i think mr. nuegebauer is asking you specifically about some of your proposed rules on short-term, what people call payday lending and how it interacts with state action in the same field. during the questioning, seriously, despite what you may think , in this particular circumstance i'm not trying to put words in your mouth but i think -- mr. cordray: i always take your comments at face value. mr. mulvaney: you said you -- mr. neugebauer asked you which states, you said all 37 that still allow payday lending, so i'll ask the question again and see if we get a clean answer. if your research as you prepared to produce these new rules on short-term lending, which states have you determined have failed to protect their own consumers? mr. cordray: maybe i wasn't clear in trying to respond to the question before. that's not how we approach the issue. it's not my job to control states or tell state officials what to do. it is my job -- mr. mulvaney: that's fair. mr. cordray: but it is my j

mr. neugebauer, chairman of the financial subcommittee for five minutes. >> director cordray, this committee spent a considerable amount of time studying the short-term small dollar marketplace and most recently your deputy director testified at my subcommittee on this issue. i will say this. many of my colleagues did not walk away with much confidence in the direction you're headed in the rule making, particularly on the issue of state and travel sovereignty. at issue are roughly 38 states that allow these products to be offered in some form and the federal pre-emption that will occur if your rule goes forward as outlined by the bureau. i have a few questions. and i'll use some slides during that question. and i hope that you will be brief and forthright in your answers. slide number 1, please. so after reviewing the current regulatory framework does any state -- did you find any state that does not have the authority to enact and regulate short-term small dollar loans? >> so what i would say is states have authority in this area and the federal government has authority in this area as well

mr. neugebauer asked you which states, you said all 37 that still allow payday lending, so i'll ask the question again and see if we get a clean answer. if your research as you prepared to produce these new rules on short-term lending, which states have you determined have failed to protect consumers? mr. cordray: maybe i wasn't clear in trying to respond to the question before, that's not how we approach the issue. it's not my job to control states or tell state officials what to do. it is my job -- it's not my job to control states or tell state officials what to do. it is my job -- mr. mulvaney: that's fair. mr. cordray: but it is my job to look at harm occurring in the mark place and look at ways to intervene to address certain predatory prackities of lenders. r. mulvaney: is it fair to assume if you promulgate a rule that's more protective of down seemers than a state has made that you deem that state to not be adequately protecting consumers. mr. corcray: we won't seek to occupy by the field in that way. what we will do, if there is a federal intervention, and this is not determined, that

mr. neugebauer, chairman of the financial subcommittee for five minutes. >> director cordray, this committee spent a considerable amount of time studying the short-term small dollar marketplace and most recently your deputy director testified at my subcommittee on this issue. i will say this. many of my colleagues did not walk away with much confidence in the direction you're headed in the rule making, particularly on the issue of state and travel sovereignty. at issue are roughly 38 states that allow these products to be offered in some form and the federal pre-emption that will occur if your rule goes forward as outlined by the bureau. i have a few questions. and i'll use some slides during that question. and i hope that you will be brief and forthright in your answers. slide number 1, please. so after reviewing the current regulatory framework does any state -- did you find any state that does not have the authority to enact and regulate short-term small dollar loans? >> so what i would say is states have authority in this area and the federal government has authority in this area as well

randy neugebauer | (r) texas, appointed taylor to west point: "our thoughts and prayers go out to mr. force's parents and his family as well. i think one of the things that we know is that the world is a very dangerous place right now, and particularly the middle east is a very unstable area." area." biden sent this tweet, saying there is no justification for such acts of terror. he says his wife jill was also in the area where that attack happened, and says it brings home the reality that terror can strike anywhere at any time. a california mother is arrested suspicion of leaving her two young children unattended inside a van.and get this police say the woman is a pediatrician! pediatrician!someone alerted two-year-old boy and nine-month-old girl crying in the car tuesday afternoon.the kids are expected to be okay. and while it's illegal in california to leave children under the age of 12 unattended -- police say that wasn't the worst part. (sgt. gary carruesco/bakersfi eld police department:39 with the heat being the way it is in kern county, you know, and the cold, you just never k