Cortez Masto, Senate Democrats Need Answers About CFPB Choice to get rid of Payday Lending Protections

Cortez Masto, Senate Democrats Need Answers About CFPB Choice to get rid of Payday Lending Protections

Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) accompanied Senator Jeff Merkley (D-Ore.) as well as the entire Senate Democratic Caucus in opposing the customer Financial Protection Bureau’s (CFPB) attempt that is new gut a unique payday protection guideline.

“Repealing this guideline provides a green light to the payday financing industry to victim on susceptible US customers,” penned the senators in a page to Trump-appointed CFPB Director Kathy Kraninger. “In drafting these devastating modifications to the Payday Rule, the CFPB is ignoring the most fundamental concepts of consumer finance — a person shouldn’t be offered a predatory loan they cannot pay off.”

Payday advances often carry interest levels of 300% or maybe more, and trap customers in a period of financial obligation. The CFPB’s very own research discovered that four away from five payday customers either standard or renew their loan simply because they cannot spend the money for high interest and costs charged by payday loan providers. […]