Payday and Car Title Loans: Stop the debt trap!

April 19, 2019

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.

Take Action

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