At a September 22 roundtable in Los Angeles, CA, Representative Linda Sánchez (CA-38) joined community leaders to discuss the impact of predatory payday lending. Local consumers shared their experiences being caught in the “debt trap” created by payday loans. Rep. Sánchez endorsed a push by the Consumer Financial Protection Bureau to put in place rules to curb the worst payday lending abuses. In California, payday lending activity is increasing—according to the state’s Department of Business Oversight, over 12 million loans were made in 2014 at a value of over $3.3 billion dollars.
Establishing the proposed CFPB rules on these abusive loans would go a long way to stopping the financial heartaches created for millions of California families who get caught in the payday loan debt trap.” comments Rep. Sánchez. “We need rules which require lenders to make sure consumers can repay their loans and make sure those struggling to get by don’t get trapped by these predatory lending practices.
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Stop the Debt Trap, Payday in the News
| Ferguson Commission Urges Greater Access to Banking in Disadvantaged Communities
This week, the Ferguson Commission released an analysis of the socio-economic environment that included recommendations for financially strengthening lower-income areas. The Commission, proposed improved access to traditional banking while discouraging services provided by payday lenders. |
Rep. Ellison, Faith Leaders Speak Out Against Payday Lending
Local religious leaders are working with Rep. Keith Ellison in order to try and help people facing high interest loans. “Payday lending is not fair. It is not credit. It is robbery,” said Pastor Paul Slack of New Creation Church. |
State Payday Advocate’s Stories
“I would encourage you to keep in mind all those people around us who are trapped in a cycle of poverty. They too need to be given hope. The fight against poverty and hunger must be fought constantly and on many fronts, especially in its causes…” |
Consumer Groups Rally to Protest Lax Florida Law Some claim Florida’s lax laws on payday lending are good enough. They’re wrong. Florida’s rules still allow for predatory debt-trap practices that can lead to financial ruin. Senior citizens are the fastest growing group of Floridians stuck in payday loans and the state law still allows lenders to charge 390% APR. |
Delawareans Fall Into Payday Pit of Despair People from Wilmington, Delaware recently found themselves on the brink of the payday lending “pit of despair,” and were encouraged to take “selfies,” learn more and get active in the fight to end abusive payday lending. |