This opportunity doesn’t come around very often: We have a chance to stop the payday loan debt trap.
Please take a moment to submit a public comment to stop payday loan sharks here.
Payday lenders market their loans as a quick, one-time financial fix. But in reality, these loans trap particularly low-income borrowers in a spiral of growing debt they can’t repay. With average annual interest rates of 565 percent, payday loans can lead to a host of serious problems for individuals and families in Wisconsin, from bankruptcy to delayed medical care.
A new set of rules proposed by the CFPB is a big step in the right direction.
This June, the federal government’s Consumer Financial Protection Bureau (CFPB) released a set of rules to rein in the predatory loan industry. The rules are rooted in the principle that lending must be based on a borrower’s ability to repay the loan. While this common-sense standard already applies to mortgages, credit cards and other loans, it doesn’t cover payday and similar predatory lenders.
It’s no surprise that predatory lenders are fighting tooth and nail to weaken this rule so that they can keep preying on millions of Americans every year, with devastating impacts for whole communities around the country.
We need your help.
Submit a public comment to the CFPB in favor of a strong payday loan rule here. You can weigh in until October 7, 2016, so please act now, and share this message with your family and friends.