WASHINGTON, D.C. – At 3:00 p.m. ET this afternoon, a House Financial Services subcommittee will convene a hearing entitled “Ending Debt Traps in the Payday and Small Dollar Credit Industry. A live-stream of the hearing along with a full witness list and background information are available on the Committee’s website.
Among those testifying is Diane Standaert, director of state policy and executive vice president at the Center for Responsible Lending (CRL), who issued the following statement:
Payday loans are debt traps by design, carrying 300% APR on average. They perpetuate economic inequality and the racial wealth gap. The Consumer Financial Protection Bureau should implement without delay its rule to rein in these predatory loans. Congress should enact a 36% APR rate cap that does not override stronger state laws.
Read Ms. Standaert’s written testimony and oral remarks as prepared for delivery.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Matthew Kravitz at matthew.kravitz@responsiblelending.org or 202-349-1859.