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Small Dollar Loans: Our Policy Positions

  • A 36 percent interest rate cap on payday loans most effectively stops the cycle of debt. Currently 15 states and the District of Columbia have enacted double-digit rate caps. Since 2005, no new state has authorized high cost payday lenders, and some that used to now do not. States can and must continue to enact strong protections, such as a rate cap of 36% or less, to stop the payday debt trap.
  • Federal laws enacted with bipartisan support make it illegal to charge service members more than 36 percent interest on a loan. One of the key enforcement roles of the Consumer Financial Protection Bureau is to closely monitor lenders who continue to prey on military personnel.

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Executive Vice President
Senior Policy Counsel