20 okt Cortez Masto, Senate Democrats Need Answers About CFPB Choice to get rid of Payday Lending Protections
Washington, D.C. вЂ“ U.S. Senator Catherine Cortez Masto (D-Nev.) joined Senator Jeff Merkley (D-Ore.) while the entire Senate Democratic Caucus in opposing the customer Financial Protection BureauвЂ™s (CFPB) new attempt to gut a unique payday security guideline.
вЂњRepealing this guideline supplies a green light to the payday lending industry to victim on vulnerable US customers,вЂќ wrote the senators in a page to Trump-appointed CFPB Director Kathy Kraninger. вЂњIn drafting these changes that are devastating the Payday Rule, the CFPB is ignoring the most fundamental maxims of customer finance вЂ” a person shouldn't be offered a predatory loan which they cannot pay off.вЂќ
Pay day loans often carry interest levels of 300% or higher, and trap customers in a period of financial obligation. The CFPBвЂ™s very own research discovered that four away from five payday customers either default or restore their loan simply because they cannot pay the high interest and charges charged by payday loan providers. The CFPBвЂ™s previous payday security ruleвЂ”which could be gutted by this new actionвЂ”was finalized in October 2017 after several years of research, industry hearings, and input that is public.