Payday and Car Title Loans: Stop the debt trap!
The CFPB is trying to gut a rule that protects consumers from predatory payday and auto lenders.
In October 2017, the Consumer Financial Protection Bureau (CFPB) issued a final national rule requiring lenders check a borrower’s ability to repay before lending money in the form of payday or car title loans. But now the new administration at the CFPB is looking to gut this crucial protection – the “ability to pay rule,” also called the “underwriting provision” – against predatory payday lenders. Without this protection, greedy lenders can force borrowers to take out multiple loans, some averaging over 350 percent interest, which they can’t fully pay back. This way consumers are trapped in debt far more costly than the original loan.
Through May 15th, you may use CHN’s comment portal to leave a comment with CFPB Director Kathy Kraninger to tell her not to roll back the ability to pay rule here. You can find six sample comments, grouped by category, here.
On May 2nd, CHN and Americans For Financial Reform (AFR) will host a webinar telling you what you need to know about the ability to pay rule. Even if you can’t attend, sign up to receive a streaming copy and slides after the event. This webinar will be captioned. Use this link to sign up.
Learn More About the Ability to Pay Rule and the CFPB
- From our Voices for Human Needs blog: “New report documents the dismantling of consumer financial protection”.
- From the New York Times Magazine: “Mick Mulvaney’s Master Class in Destroying a Bureaucracy From Within.”
- Read about the work of our member the National Consumer Law Center here.
- Visit Stop the Debt Trap, a coalition of 800 civil rights, consumer, labor, faith, veterans, seniors and community organizations from all 50 states who oppose the CFPB’s effort to repeal the current rule on payday lending.
- Read our Human Needs Report on the rule repeal here.
- Our friends at Americans For Financial Reform (AFR) keep a list of policy materials here.
- From our friends at UnidosUS: Taking a Stand Against Shady Payday Lenders.