Policy & Legislation
Battles rage across the country between the payday lending industry and coalitions of citizens groups who are increasingly insisting they will not accept 400 percent interest lending. Fifteen states plus the District of Columbia have outlawed triple-digit interest, and two states rejected them in ballot measures last November – Ohio and Arizona, which becomes the sixteenth state to put a stop to the predation through an interest rate cap as of July 2010.
Other than protecting military families with a 36% APR cap on small predatory loans, Congress has not yet moved to expand reforms across the country, and some big national banks are beginning to get into the business with loans that are virtually indistinguishable from storefront payday loans.
Search Payday Lending - Policy & Legislation
Browse Payday Lending - Policy & Legislation
- Letter to Federal Regulators: Stop Illegal Payday Loans
October 28, 2013
The National Consumer Law Center, Consumer Federation of America, Center for Responsible Lending and 26 other consumer and civil rights groups sent a letter to federal regulators urging stronger measures to stop illegal payments from being taken out of consumers’ bank accounts. The letter went to federal bank regulators, the U.S. Department of Justice, and the Federal Trade Commission.
- Comments by CRL and other Consumer Advocates to Department of Defense: Limitations on Terms of Consumer Credit
August 1, 2013
The Department of Defense is currently considering public comments and recommendations from other regulators on strengthening protections under the Military Lending Act. CRL and other groups have urged the DoD to significantly broaden the definition of credit covered under the law's 36% APR limit to include, among other products, all payday loans regardless of how they are structured or how long their term is.
- Testimony: Seniors Vulnerable to Predatory Payday Loans
July 24, 2013
Rebecca Borné, senior policy counsel for CRL, testifies on the harms of payday loans and how seniors are particularly vulnerable. The Senate Special Committee on Aging held this hearing to examine the impact of payday loans on older Americans.
- Advocates Support Proposed Restrictions on Bank Payday Lending
May 30, 2013
CRL and allies urge the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to implement and strengthen their proposed guidance to restrict "deposit advance" (i.e., payday loans) by the banks they supervise. AARP, Consumer Federation of America, the Leadership Conference on Civil and Human Rights, the NAACP, the National Consumer Law Center and the National Council of La Raza joined CRL in submitting these comments.
- All Federal Credit Unions Should Shun Payday Lending
May 16, 2013