Washington, DC – Today, in response to the release of the Consumer Financial Protection Bureau’s (CFPB) 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 taking this crucial step to protect consumers. This will help stop abusive practices that trap working class consumers in a spiral of debt.
“We need to ensure that all Americans have access to responsible basic banking products and services and that they are protected from abusive lending from unsavory financial predators. This rule from the CFPB is an important step in that direction.”
The new rules require lenders determine a borrower’s ability to repay before making these types of loans.
“The payday lending rule will result in fewer families falling into financial ruin,” Taylor said. “While this is a significant step, there is still a lot of work to be done to protect this rule from those in Congress who oppose it. The CFPB should also adopt rules to protect consumers from abusive long-term, high-cost loans.
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About NCRC:
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.
