Nearly 200 labor, consumer, civil rights, and community organizations joined together to express opposition to any bill, similar to last year’s H.R. 7428 (Steil), that exempts earned wage payday loans from the Truth in Lending Act (TILA). Doing so would endorse a form of loan that makes workers pay to be paid and would facilitate new evasions by payday lenders. A TILA exemption would also deprive servicemembers of the protections of the Military Lending Act and override the Consumer Financial Protection Bureau’s well-reasoned explanation published last year that these paycheck advances are loans and their hidden costs are finance charges.
