Stop The Debt Trap Release on Senate Effort to Repeal Payday Rule

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For Immediate Release

Senate Rolls Out Attack On Consumer Protection Against Predatory, Payday Lenders

WASHINGTON, D.C. – U.S. Senator Lindsey Graham (R-S.C.) has introduced a Congressional Review Act (CRA) resolution, S.J. Res 56, which would repeal the payday and car title lending rule finalized by the Consumer Financial Protection Bureau (CFPB) in October. The announcement to roll back this vital consumer protection echoes similar movement within the consumer bureau to bend to the will of the payday lending industry.

The Stop the Debt Trap campaign, made up of more than 750 organizations from across the country, released the following statement:

“The reckless decision to repeal the payday rule goes to show the level of influence payday lenders have on our Members of Congress. Taking the protections in this rule away from borrowers would enable predatory lenders to get away with charging obscene 400% interest rates that put distressed borrowers in an endless debt trap. The Senate should reject all efforts to roll back this important, commonsense consumer protection which aims to curb abusive loan sharking.”