33 Senators Sign on In Support of a Strong Rule on Payday

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: