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As Clock Starts for Comments on Gutting of CFPB Payday Rule, New Map Shows Triple-Digit Interest Rates Across America

Thursday, February 14, 2019
Charla Rios


Durham, N.C. – Today, Trump-Appointed Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger’s plan to gut the payday rule was published in the Federal Register, which starts the clock for public comment on the proposal. To provide context for this action, the Center for Responsible Lending (CRL) is releasing its two-page initial overview and analysis of the proposed repeal and a map showing the typical interest rate for payday loans in states that allow these debt trap products.



Center for Responsible Lending Researcher Charla Rios issued the following statement:

Payday lenders charge sky-high interest rates as part of a business model that buries people in debt. This map shows the deep need for reform across large swaths of the nation.

In 2017, the CFPB, based on extensive research, issued a rule that would disrupt this exploitative business model by establishing a commonsense ability-to-repay standard. The CFPB should keep this rule.

Meanwhile, sixteen states, now including Colorado, have completely stopped payday loans from trapping their residents in debt by establishing interest rate caps of no higher than 36%. Nearly 100 million Americans now live in this ‘Paydayfreelandia.’ Additional states should join them.

Furthermore, while the CFPB could not establish an interest rate cap, Congress has that authority and should do so – as it did on a bipartisan basis for military servicemembers.

Additional Background

The typical APR for each state on the map is based on the average rate for a $300 loan advertised by the largest payday lending chains, or as determined by the state regulator, where applicable.


For more on payday-free states, please check out CRL’s report “SharkFree Waters: States are Better Off without Payday Lending.”


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