Payday lenders survive by keeping customers caught in long-term debt. In 2006, Congress acted to protect military families from this predation by prohibiting payday and title lenders from charging higher than 36 percent APR. However, military families remain vulnerable to payday loans from banks, and Congress has not broadened the protections in the Military Lending Act to cover civilians, leaving the millions of Americans who live in states without protections vulnerable to predatory payday and car title lenders.
Browse Payday Lending - Policy & Legislation - Congress
- U.S. Senators ask Regulators to Stop Bank Payday Lending
January 7, 2013
Five U.S. Senators have asked the OCC, the FDIC and the Federal Reserve to stop the banks under their respective jurisdictions from making predatory payday loans. At least four big banks have started making the triple-digit interest loans, which are virtually identical to the predatory payday loans that trap borrowers in long-term, high-cost harmful debt.
- H.R. 6139: Payday Lender Carve-out Will Undermine Consumer Financial Protection Bureau and States
August 27, 2012
Carve-outs for payday lenders will undermine state protections and CFPB.
- CRL's Testimony: A National Payday Charter Is A Bad Idea
July 24, 2012
Testimony of Kenneth W. Edwards Vice President of Federal Affairs, Center for Responsible Lending, before the House of Representatives Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit in regards to hearing on Examining Consumer Credit Access Concerns.
- Military and Payday
November 22, 2010
Military and Payday: Congress acted to protect military families from this predation by including a measure in the Defense Authorization Act of 2006 that prohibits payday and title lenders from charging higher than 36 percent APR.
- Interest Rate Survey
March 30, 2009
CRL conducted a national survey to measure public support for one strategy on the table: a 36 percent cap on annual interest rates for consumer loans. The survey found high levels of support for such a measure, which had very little variance across different demographic groups.
- A 36% APR Cap on High-Cost Loans Promotes Financial Recovery
January 31, 2009
Explains the importance of a federal 36% interest rate cap in stopping predatory lending and stimulating the economy.