Action Alert: Help the CFPB Curb Dangerous Payday Lending Practices
As you know, this past summer, the Consumer Financial Protection Bureau (CFPB) released its highly anticipated proposed rules for reining in the most predatory practices of the small-dollar lending industry. This market is notorious for trapping borrowers in costly cycles of debt, which drain over $9 billion from financially vulnerable households every year.
Over the past year, you have worked hard to promote the need of the communities and borrowers most heavily impacted by this market, both through our #ConsumersCantWait Campaign and through the collective efforts of the Stop the Debt Trap Campaign. It’s those efforts that have gotten us here, to the public comment period of the CFPB’s push to end the payday debt trap. We’ve finally reached the moment we’ve all been waiting for—the most important moment for taking action and ensuring the CFPB releases the strongest possible rule to protect consumers.
We applaud the Bureau for releasing a solid proposal – but that proposal needs improvements if it is to truly end the debt trap for all consumers. To do that, the CFPB needs to hear from as many advocates on the ground as possible.
As part of the comment period, CFED has written a letter that strongly backs the Bureau’s efforts, and recommends a number of ways the rule could be improved. As was reported earlier this month, payday lenders are actively—and openly—working to delay or defeat the CFPB’s efforts by adopting a number of aggressive schemes, including pressuring every single customer that comes to their stores “…to write out a handwritten letter [telling the] Bureau why they use the product, how they use the product and why this will be a detriment to their financial stability.”
In order to ensure the strongest rule possible and to push back against the industry and its hardline tactics, we need as many signers to CFED’s letter as possible. Let’s make sure small-dollar lenders do not succeed in their efforts to weaken the CFPB’s proposed rule.
Adding your voice is easy—simply click here for an executive summary that outlines our recommendations for making the rule as strong as possible. The deadline for signing on is October 4, so please don’t wait: sign on today!
If you have any questions about the rule or the comment letter, please reach out to Anju Chopra, Senior Policy Manager, at email@example.com.