The Case for Payday Lending Reform
The proposed federal regulations would compel payday lenders to do more to assess whether a borrower has the ability to afford a loan. They would be required to check the borrower’s credit and consider his other living expenses. This is what banks normally do before making loans. It’s important, because borrowers who are able to afford loans are less likely to keep taking out more of them and racking up fees. However, the regulations would make exceptions to the requirement that would let payday lenders evade it in many cases. Those exceptions should be eliminated, or at least narrowed.
The CFPB is now weighing public comments on its proposed regulations. (You can read them at the agency’s website, consumerfinance.gov. Search “payday rulemaking.”) Ideally, the agency will heed critics’ appeals to strengthen them. Then those regulations will form a firmer foundation for Florida and other states to fortify their own laws to protect their residents from predatory payday lending.
If you agree that it’s time for a strong rule from the CFPB to rein-in the abuses of the payday lending industry, take just a moment to send them a message today!
And remember, your support keeps us fighting every day for economic justice for Tennessee families.
For more on how to stop payday predators, follow @TNCitizenAction