On June 4, thirty-three U.S. Senators sent a letter (PDF) to CFPB Director Richard Cordray, urging the adoption of strong rules to regulate payday and other “small dollar loans with astronomical interest rates.”
Payday, Car title and High Cost Installment Lenders market these loans as one-time quick fix; but in reality they know that most of their loans cannot be paid back in full and on time without the borrower taking out another loan to cover basic necessities like food and rent.
Americans for Financial Reform applauds the strong message these senators sent to #StopTheDebtTrap.
Senators Dick Durbin (D-Ill.) and Jeff Merkley (D-Ore.) deserve particular praise for organizing the effort. Senators Baldwin, Blumenthal, Booker, Boxer, Brown, Cantwell, Cardin, Coons, Durbin, Feinstein, Franken, Gillibrand, Heinrich, Hirono, Kaine, King, Klobuchar, Leahy, Markey, Merkley, Murphy, Murray, Peters, Reed, Sanders, Schatz, Schumer, Shaheen, Stabenow, Udall, Warren, Whitehouse and Wyden also signed the letter.
Their initiative has been widely reported. Some samples of the media coverage:
- Senate Democrats Want Tough Rules to Rein In Payday Lenders
Victoria McGrane, Wall Street Journal, 6/4/15 - Dems demand ‘strongest rules possible’ for payday lenders
Lydia Wheeler, The Hill, 6/4/15 - Reining in payday lenders
Editorial, The Register Guard, 6/5/15 - Senate Democrats Want Tough Rules to Rein In Payday Lenders
Wall Street Journal (blog) - Sen. Tim Kaine urges strong rules to prevent predatory payday lending practices
Editorial, Augusta Free Press, 6/5/15 - Merkley, colleagues urge crackdown on ‘predatory’ lenders
KTVZ.COM, 6/5/15