Protect consumers—not financial predators

Source
RAUL I. RAYMUNDO | Crain's Chicago Business
People at their most desperate are at their most vulnerable. In an economy that’s booming, the wealth gap should be shrinking, not widening. Climbing the economic ladder for the working poor, especially for blacks and Latinos, is being threatened by payday loan lenders eager to exploit the situation with the help of the Consumer Financial Protection Bureau (CFPB). Earlier this year in a contradiction of its very name, CFPB announced it would protect predatory lenders and not consumers. Instead of executing the first comprehensive federal rule that would curtail these lenders’ debt traps by
Payday and Other Small Dollar Loans

Payday and Car Title Lenders Drain Nearly $8 Billion in Fees Every Year

Payday and Car Title Lenders Drain Nearly $8 Billion in Fees Every Year

Payday and car-title loans typically carry annual percentage rates (APR) of at least 300%. These high-cost loans are marketed as quick solutions to a financial emergency. Research demonstrates, however, that they frequently lead to debt that is nearly impossible to escape. In addition, these loans are related to a cascade of other financial consequences, such as increased overdraft fees, delinquency on other bills, involuntary loss of bank accounts, and even bankruptcy. For car-title loans, the end result is too often the repossession of the borrower’s car, a critical asset for many people...
Research
Payday and Other Small Dollar Loans