Payday/High-cost Loans

Groups Urge Congress to Pass VCFCA which Caps Consumer Loan Interest Rates at 36%

CFA joined 69 civil rights, community, consumer, faith, housing, small business, and legal services organizations and individuals in a letter to Senators Reed, Brown, and Merkley in support of the Veterans and Consumers Fair Credit Act, which would extend the Military Lending Act’s 36% interest rate cap on consumer loans to all Americans, including veterans, Gold Star Families, and unactivated reservists. The groups urged its swift passage in the 117th Congress to protect all consumers from predatory lending. The Veterans and Consumers Fair Credit Act addresses the problems caused by unaffordable, predatory payday, auto-title, and similar forms of loans by Reestablishing a simple, common-sense limit on predatory lending, preventing hidden fees and loopholes, Maintaining low industry compliance costs from compromise rules already in effect, and upholding stronger state protections.