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 …

Kathy Kraninger Should Protect Consumer From Debt Trap Loans

FOR IMMEDIATE RELEASE: December 6, 2018 CONTACT: Desmond Lee; desmond.lee@berlinrosen.com; 646-517-1826                   KATHY KRANINGER SHOULD PROTECT CONSUMERS FROM DEBT TRAP LOANS WASHINGTON, D.C. – Today, the GOP-controlled Senate narrowly voted along party lines to confirm Kathy Kraninger for Director of the Consumer Financial Protection Bureau (CFPB). Kraninger – who currently works as an aide to Mick Mulvaney at the Office …

Payday Loan Reform News – November 5

Highlight   Editorial: Taking step back on payday lending unwarranted October 30, Herald-Dispatch The Consumer Financial Protection Bureau announced it will revisit a crucial part of its year-old payday-lending industry regulations. This move that will likely make it more difficult for the bureau to protect consumers from potential abuses, if changed. More Coverage: Consumer Financial Protection Bureau to revisit payday-loan …

Payday Loan Reform News – October 29

Highlight   Herring, other AGs, seek continued consumer protection for service members Fairfax News, October 23 In a letter to the CFPB and Director Mulvaney, Herring and a bipartisan coalition of 32 other attorneys general urge the CFPB to reconsider its reported decision to stop examining lenders to ensure they are complying with the MLA. More Coverage: Jackley calls for …