(NNPA)—In the aftermath of a letter signed by 500 consumer advocates from all 50 states, an unprecedented push for reining in abusive small-dollar, high-cost loans has engaged the White House and Capitol Hill. When an increasing number of Americans are striving to keep their financial houses in order, eliminating predatory lending is making news.
If advocates prevail, a range of consumer loans, including payday and car title, high-cost installment loans, deposit advance products and open-end lines of credit, will all be affected. The benefit for consumers will be an exit from the turnstiles of debt that rob borrowers’ earnings.
One major development was the announcement of a long-awaited draft proposal from the Consumer Financial Protection Bureau. At a public field hearing in Richmond, Va. on March 26, Richard Cordray, CFPB director, explained the significance of proposed regulation.
“Extending credit to people in a way that sets them up to fail and ensnares considerable numbers of them in extended debt traps, is simply not responsible lending,” said Cordray. “It harms rather than helps consumers. It has deserved our close attention, and now it leads to a call for action.”
About Post Author
