The Inclusive Economy
Stand Up Against the Predatory Lending Industry and Tell Them #ConsumersCantWait
By David Newville on 08/06/2015 @ 01:00 PM
Every single day in the United States, predatory lenders such as payday and other “fringe” lenders strip consumers of their hard-earned money. In some states, poor regulations permit these predators to charge egregious interest rates—sometimes in the ballpark of 1,900% APR—on what are supposed to be short-term, small-dollar loans, trapping consumers in a cycle of debt. This fall, the Consumer Financial Protection Bureau (CFPB) is slated to propose regulations on payday lenders. This has caused the industry to sink millions of dollars into lobbying efforts designed to ensure they continue to operate with the least regulation possible. In response, CFED, along with our partners in the Asset Building Policy Network, invites you to join our campaign to fight back against the industry’s efforts and to tell the CFPB to stop the debt trap today!
While the CFPB has already proposed a framework for regulations that would be a significant step in the right direction, it doesn’t go far enough to protect consumers from falling into a debt trap brought on by these unscrupulous lenders because it leaves open too many loopholes. Furthermore, because the proposed rules are still months away and the process of finalizing and implementing proposed regulations into codified legal protections for consumers is extensive, the CFPB must act now. Every day the CFPB waits to propose regulations is another opportunity for the industry to add to the $46 billion in annual profits they make off the misfortune of struggling families. This is hardly the opportunity economy that CFED and our partners envision.
Please join our Campaign today to tell the CFPB that #ConsumersCantWait for strong protections. Here are five ways you can get involved right now:
- Register for our Campaign Call to Action for ways to engage in the Campaign and spread the word. The call will take place at 3 pm EDT on Thursday, August 13.
- Write and pitch an op-ed to your local newspaper editor making the case for why residents of your state need stronger regulations sooner. Tools for how to do this successfully are here.
- Share social media content from our campaign toolkit to get your networks excited about the issue and generate buzz.
- Demonstrate the scope of the problem facing consumers in your state by using data from the 2015 Assets & Opportunity Scorecard.
- Connect us with stories of clients who have suffered the consequences of predatory lending practices by sharing them in our Story Bank. These stories help show reporters and policymakers just how urgently consumer protections are needed.
In addition to these activities, each of which you can do today, we’ll also be writing comment letters following the release of the proposed rules this fall. At that time, we will be asking you to help us get as many people as possible to sign onto these letters, and we’ll be providing support to those who want to write their own comment letters. There may also be opportunities to make your voice heard if the CFPB holds town hall meetings to seek input from consumers and professionals like you. So, stay tuned for more information once the rules are released!
The payday lending industry lobby is strong, but together, we can sound a unified voice that represents the millions of consumers who deserve better.