The Consumer Financial Protection Bureau (CFPB) has proposed a new national rule that addresses payday and car title lending. The proposal, as written, has some useful elements, but it is seriously undermined by several major loopholes. If the loopholes aren’t closed in the final version, the rule could essentially permit payday predators to conduct business as usual.
What We Can Do
- There is still time to make the rule stronger. Call for a stronger rule by sending comments to the CFPB through October 7, 2016.
- We must continue to fight for rate caps in states, as rate caps are the single most effective way to end the harm of payday lending.
- Congress must extend the protections of the Military Lending Act to all Americans and implement a federal 36% rate cap on all small dollar loans.