More Than 100 House Members Send Letter Urging Strong CFPB Payday Rule

Members Applaud Bureau for First Step in Regulating Small-Dollar Lending Industry

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. Yarmuth

Katherine 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. Cicilline

Louise 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