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Help Us Fight for National Payday Loan Protections

Date: 
09/16/2014

Help Us Fight for National Payday Loan Protections


This year, the Consumer Financial Protection Bureau (CFPB) is preparing to issue new rules for payday lenders.  This historic and unprecedented opportunity will enable a federal agency to finally curb the payday loan debt trap nationwide, much like we have already done here in Illinois.   We expect Payday lenders to mount a significant campaign to stop these efforts.  

The CFPB must allow public comments to be submitted for 60-90 days, with a final proposed rule likely to come in January of 2015.  This means that we have only a few short months to take advantage of this unprecedented opportunity.  

What the CFPB can and should do:
•    Require lenders to take into account a borrower’s ability to repay the loan when considering income and expenses;
•    Limit the amount of time that lenders can keep borrowers in payday loan debt; and
•    Restrict lenders from requiring a post-dated check or electronic access to a borrower’s checking account as a condition of extending credit.

In 2011, Citizen Action/Illinois passed  the Consumer Installment Loan Act, which caps rates for nearly every short-term credit product in the state, prevents the cycle of debt caused by frequent refinancing, and gives regulators the tools necessary to crack down on abuses and identify potentially predatory practices before they become widespread.   Now, we need to take the next step in enhancing those protections in Illinois and across the country.

Taking Action:
Have you or someone you know been harmed by a payday loan?  If so, we need your story.  Stories are the most effective weapon we have in explaining the payday loan trap.  
•    Sign our petition: http://bit.ly/1tuZF5J
•    Submit your complaint to the CFPB at www.consumerfinance.gov/complaint
•    Submit your story to Citizen Action/ Illinois at john@citizenaction-il.org .  We would like to use these stories in our conversations with Congressional members, in our discussions with media, and in talking to others that have been impacted.