Washington, DC – Today, in response to the release of the Consumer Financial Protection Bureau’s (CFPB) proposed rule to protect consumers from abusive payday and car title loans, NCRC President and CEO John Taylor made the following statement.
“We applaud the CFPB for proposing a rule that sensibly includes consideration of a borrower’s ability to repay in the provision of payday and car title loans. Very often, these high-cost loans are designed to trap consumers in a spiral of debt. The proposed rule is an important first step for putting a stop to those harmful and predatory practices.”
“The CFPB should strengthen the rule’s ability to repay standard, which in the proposed rule does allow six loans annually without consideration of a borrower’s ability to repay. In addition, CFPB should close several loopholes in the proposed rule that could still leave consumers vulnerable to abusive practices.”
“We need to ensure that all neighborhoods and communities have access to safe, responsible basic banking products and services and that they are protected from abusive lending from unsavory financial predators. Today, the CFPB has taken important action to help make that a reality.”
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.