NCRC Statement on CFPB’s Proposed Rule on Payday and Car Title Lending

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.” 

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About NCRC
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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.

 

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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