Last year, dozens of my colleagues joined me in urging the Consumer Financial Protection Bureau (CFPB) to rein in predatory loan sharks who are charging astronomical interest rates – sometimes over 300% – without any kind of meaningful federal legislation to regulate their business practices.
Millions of working Americans have been taken advantage of by bad actors in the payday loan industry, with many borrowers ending up paying more in fees than the amount they originally borrowed.
That’s why I’m proud that the CFPB has proposed new rules aimed at addressing abuses in the payday lending industry.
The rule proposed this week would require lenders to ensure that consumers have the ability to repay the loans and to provide affordable repayment options, cap the number of rollovers within a certain period of time, and place limits on when and how lenders can gain access to money in consumers’ bank accounts.
This system is rigged, but I'm proud to stand up for the people working hard to make ends meet.