Washington, D.C.- Today, 104 House Members, led by Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, sent a letter to the Consumer Financial Protection Bureau (CFPB) urging it to adopt a strong final payday lending rule and close loopholes that harm consumers.
Congress gave the CFPB the authority to study and regulate the payday lending industry to curb its predatory practices, which trap consumers in an endless cycle of debt. On June 2, the CFPB released a proposed rule to rein in predatory payday lending. In the letter to CFPB Director Richard Cordray, the Members applauded the Bureau’s efforts “to ensure that fairness, honesty, and transparency become basic components of the products offered by the small-dollar lending industry.”
“It is with these principles in mind that we encourage the CFPB to adopt a final rule that truly ensures access to responsible small-dollar credit,” the letter states. “The CFPB’s final rule must close every loophole that is shown to harm consumers.”
The Members called on the Bureau to ensure that payday lenders consider a borrower’s ability to repay a loan and to close loopholes that would allow borrowers to take out multiple loans in succession and to shorten the “cooling-off” period between loans. A recent staff report by the Democratic staff of the Financial Services Committee found that payday lenders frequently take advantage of loopholes at the state level in order to skirt state regulation, even in states where payday lending is banned.
“Only a comprehensive federal framework, free of harmful loopholes, can supplement existing state protections and help stop consumers from becoming trapped.”
The full text of the letter can be found here:
Maxine Waters
Bill Pascrell, Jr.
Donald Payne, Jr. Earl Blumenauer Suzanne Bonamici Danny K. Davis Nydia M. Velázquez Eleanor Holmes Norton Alan Lowenthal Keith Ellison Bonnie Watson Coleman Raúl M. Grijalva Jan Schakowsky James P. McGovern José E. Serrano Luis Gutiérrez Frederica Wilson John A. YarmuthKatherine Clark
Charles B. Rangel Pete Aguilar John Garamendi Mark Takano Rubén Hinojosa Terri A. Sewell John Conyers, Jr. Lucille Roybal-Allard Julia Brownley James R. Langevin Jackie Speier Chris Van Hollen Tim Ryan Jim McDermott David N. CicillineLouise M. Slaughter
John Lewis
Zoe Lofgren
Jerrold Nadler
Stephen F. Lynch
Michael E. Capuano
Danald S. Beyer, Jr.
David Price
Mark Pocan
Chellie Pingree
Frank Pallone, Jr.
Henry C. “Hank” Jr. Johnson
Elijah E. Cummings
Michael M. Honda
Al Green
Rosa L. DeLauro
Gerald E. “Gerry” Connolly
Peter J. Visclosky
Robert C. Scott
André Carson
Linda Sánchez
Yvette D. Clarke
Barbara Lee
Carolyn Maloney
John B. Larson
Alma Adams
Joe Courtney
Anna G. Eshoo
Cedric Richmond
Steve Cohen
John P. Sarbanes
Ami Bera
Suzan DelBene
William “Lacy” Clay, Jr.
Jared Polis
Lloyd Doggett
Sheila Jackson-Lee
Sander Levin
G.K. Butterfield
Marcia L. Fudge
Jared Huffman
Sean Patrick Maloney
Nita M. Lowey
Filemon Vela
Peter Welch
Hakeem Jeffries
Sam Farr
Tammy Duckworth
Peter DeFazio
Robert Brady
Ted Lieu
Karen Bass
Mark DeSaulnier
Adam Smith
Xavier Becerra
Judy Chu
Stacey Plaskett
Donna F. Edwards
Joseph Kennedy, III
Eddie Bernice Johnson
Marc Veasey
Ann Kirkpatrick
Brian Higgins
Tulsi Gabbard
Betty McCollum
Janice Hahn
Joyce Beatty
Robin Kelly
Brenda Lawrence
Denny Heck