A Fight We Can Win

June 3, 2016 by  
Filed under Issues, Payday Lending, Recent Blog Posts

Yesterday, the Consumer Financial Protection Bureau released a proposed rule designed to rein-in payday and car title loan sharks.
We are pleased with this first step toward providing relief from the cycle of debt so many borrowers find themselves in after being preyed upon by payday predators.
As the rule was being released, we released a report on the harmful impacts of payday lending in Tennessee.
We pointed out that Tennessee families pay over $400 million a year in fees to payday and car title predators. We noted that the average Tennessee borrower pays $490 in fees to borrow $300 over a period of five months.
We’re fighting back and beating back the shark attack — and it’s getting noticed:
From the Chattanooga Times Free Press:
Charging the industry is filled with “loan sharks” and “predatory lenders,” Andy Spears, executive director of Tennessee Citizens Action, said at a news conference today that his group has unsuccessfully sought to curb the industry’s worst practices in the state Legislature but run into road blocks.

“Tennessee families pay more than $400 million a year in payday and car title lending fees,” Spears told reporters. “The average Tennessee borrower pays $490 in fees to borrow $300 for five months.”
Spears said “today’s proposed rule by the CFPB is a good start. It focuses on the ability to repay which is a critical element missing because the current standard is the ability to collect.”

And from the Tennessean:
“Payday loans trap people in cycles of debt that drain local economies and result in a cascade of financial consequences, such as increased overdraft fees, delayed medical care, and even bankruptcy,” the Tennessee Citizen Action report said. “Siphoning money out of poor communities and communities of color takes a serious toll on the economy.”
Now that there’s a proposed rule, we have an opportunity to weigh-in and claim a victory over the loan sharks — Here’s what you can do:
Take a moment and send a comment to the CFPB on their proposal. Tell them it’s important to include a strong ability to repay provision. Tell them your story of a payday lending encounter. Tell them that Tennessee families need a strong rule with clear enforcement in order to rein-in the loan sharks.
And remember, we count on YOU to help us win the fight against payday lending loan sharks in Tennessee. Your contribution of $5 or $10 today will help keep the fight against legalized loan sharking alive.
For more on the fight against payday predators, follow @TNCitizenAction 

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