WASHINGTON, D.C. – Today the Center for Responsible Lending, Americans for Financial Reform, People’s Action, and representatives of the Stop the Debt Trap campaign, hosted a press teleconference with reporters to discuss the Consumer Financial Protection Bureau’s (CFPB) new rule to limit short-term payday and car-title lenders’ ability to trap borrowers in an endless cycle of debt.
The payday lending rule will result in fewer families falling into financial ruin. At the heart of the rule is the common sense principle that lenders check a borrower’s ability to repay before lending money. While praising the CFPB for pushing to stop the debt trap, the coalition called on the Bureau to build on this progress by quickly working to develop regulations to protect consumers from abusive long-term, high-cost loans. The coalition also urged that strong state laws, such as rate caps, must continue to be defended and enacted.
Participants on the call included:
- Mike Calhoun, President, Center for Responsible Lending
- Lisa Donner, Executive Director, Americans for Financial Reform
- Vanita Gupta, President and CEO, The Leadership Conference on Civil and Human Rights
- Rev. Dr. Willie Gable of the National Baptist Convention, USA, Inc., co-chair of the Faith & Credit Roundtable
- Hilary O. Shelton, NAACP Washington Bureau Director and Senior Vice President for Policy and Advocacy
- Stephany Morales, Payday Borrower and People's Action member.