Broad Coalition Opposes Proposal to Delay CFPB Payday Rule

The Consumer Financial Protection Bureau (CFPB) has proposed delaying when payday lenders would need to comply with a 2017 rule on predatory payday lenders by 15 months. This would allow the industry to skip the common-sense requirement that it verify that a borrower has the ability to repay a loan – and to continue trapping Americans in vicious cycles of …

Kraninger’s Feet Were Brought to the Fire. They’re Burnt to a Crisp.

You can find the piece in its entirety with images here Last week CFPB Director Kathy Kraninger testified in front of the House Financial Services Committee, marking her first hearing since taking the helm last December. Percy the Payday Loan Shark made his 2019 debut at the hearing, speaking to attendees outside. Percy wanted to give a huge thanks to …

Act now! Tell CFPB to Keep Protections from Payday Loan Debt Traps

Download the Call to Action In early February 2019, the current Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger released a proposal to gut the CFPB’s 2017 rule aimed at stopping payday and car title loans from trapping people in debt. Director Kraninger’s plan would repeal the heart of the 2017 payday rule, which generally requires that lenders determine a …

Compendium of Outrage – Payday Rule Repeal

On February 6th, the CFPB announced their plans to gut crucial protections that would stop payday lenders from trapping consumers in spiraling debt. The existing rule establishes the common sense requirement, typical of other types of loans, that lenders should have to verify a borrower’s ability to repay a loan before issuing it. The new CFPB leadership is taking away …

CFPB Releases Plan to Gut Payday Loan Protections

  FOR IMMEDIATE RELEASE: February 6, 2019 CONTACT: Desmond Lee; desmond.lee@berlinrosen.com; 646-517-1826 A Gift to the Payday Loan Sharks  WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) under Trump-appointed Director Kathy Kraninger unveiled a plan to gut the CFPB’s landmark 2017 payday and car title lending rule before it even goes into effect. By eviscerating this consumer protection, …

Payday Loan Reform in the News – February 1, 2019

Highlight Columbia prof’s ties to payday lenders cloud CFPB rollback January 31, New York Post Kevin Dugan Since at least 2017, US regulators have relied on a single, “objective” academic study to shape restrictions on short-term, high-interest loans, which critics claim are prone to victimize cash-strapped borrowers. But the Ivy League professor behind that study — which scrutinized in particular …

Payday Loan Reform in the News – January 28, 2019

Highlight One study, two vastly different visions for CFPB payday rules January 23, American Banker Kate Berry When Columbia University law professor Ronald Mann undertook a survey of 1,000 payday loan customers to determine if they could estimate how long it would take to repay a loan, little did he know that the resulting study would become a lightning rod …

FDIC Should Prevent High-Cost Bank Loans and Stop Rent-a-Bank Schemes

WASHINGTON, D.C. – Today, 88 organizations from The Stop the Debt Trap campaign, a coalition of state and national consumer, civil rights, faith, seniors’, labor, and other groups, submitted a comment to the Federal Deposit Insurance Corp. (FDIC) urging the agency’s leadership not to support unaffordable bank loans above a 36% annual percentage rate (APR), to require underwriting that considers …

Payday Loan Reform in the News – January 18, 2019

Highlight CFPB to scrap key underwriting portion of payday rule January 14, American Banker Kate Berry The Consumer Financial Protection Bureau is expected to eliminate underwriting requirements in a highly anticipated revamp of its payday lending rule, according to sources familiar with the bureau’s proposal. But sources familiar with the agency’s thinking say the CFPB — now led by Trump …