Washington D.C.—Tomorrow at a field hearing in Kansas City, Missouri, the Consumer Financial Protection Bureau (CFPB) is expected to release its long-awaited proposed rule to prevent harmful practices in the payday and car title loan industry.
In advance of the field hearing, Tom Feltner, Director of Financial Services at Consumer Federation of America released the following statement:
“Since the CFPB was created, the Bureau has worked diligently to understand the payday and car title market, examine the consumer experience and develop focused and data-driven interventions to prevent harmful practices. We look forward to a strong rule that will protect consumers from the well-documented abuses of an industry that has made every attempt to evade meaningful oversight. We believe that a strong rule will apply to payday and car title loans regardless of the length of the loan and ensure that lenders are only making loans that the borrower can afford based on their income and expenses. A strong rule should also protect borrowers’ bank accounts from high and unpredictable overdraft fees that compound the cost and harm of interest rates that average 391 percent. A rule that includes these provisions, without loopholes, represents the best chance that consumers have in obtaining relief from harmful debt products.”
CFA will provide further comments after the expected release of the proposed rule on Thursday June 2.
Contact: Tom Feltner, 202-618-0310
The Consumer Federation of America is an association of more than 250 nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education.