(NNPA)—In recent weeks a consistent drum beat against predatory lending’s small dollar loans has reached regulators and legislators alike. Broad consensus on the real-life harms caused by these lending products has united consumers in all 50 states and forged an unprecedented call of concern linking 467 organizations including civil rights leaders, clergy, labor, veterans, elder and consumer advocates.
Pending legislation and an upcoming rule by the Consumer Financial Protection Bureau together triggered a deluge of advocacy with a single purpose: stop the debt trap of triple-digit interest rates on a range of predatory products like payday, car title and high-cost installment loans.
In September before the Senate Committee on Banking Housing and Urban Affairs, Hilary Shelton, Director of the NAACP Washington Bureau testified on the specific harms inflicted on communities of color.
“We need to rid our neighborhoods of predators and stop the proliferation of abusive predatory lending products that strips, rather than builds, financial health and wealth in our communities,” said Shelton.
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