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Consumer Advocates Urge Congress To Cap Payday Loan Rates

Consumer Advocates Urge Congress To Cap Payday Loan Rates

WASHINGTON, D.C. – Today, the middle for accountable Lending (CRL), People in the us for Financial Reform (AFR), and almost 40 nationwide and state companies sent a page urging people in Congress to pass through the Protecting Consumers from Unreasonable Credit Rates Act, a bicameral bill introduced by U.S. Senators Richard Durbin (D-Ill.) and Jeff Merkley (D-Ore.) and U.S. Representatives Matt Cartwright (D-Penn.) and Steve Cohen (D-Tenn.). The bill would protect customers from predatory loan providers by capping payday and car-title loans at a maximum of 36% apr (APR).

“Currently, payday and vehicle name loan providers charge triple digit interest that is annual, frequently 300 % or more. A big human body of studies have demonstrated why these items are organized to generate a long-term debt trap that drains consumers’ bank reports and results in significant economic damage, including delinquency and default, overdraft and non-sufficient funds costs, increased trouble paying mortgages, rent, as well as other bills, lack of checking records, and bankruptcy,” the team composed. “It is very important for Congress to create the exterior restriction regarding the cost-of-credit to suppress abusive financing. Today, 15 states plus D.C. Continue reading Consumer Advocates Urge Congress To Cap Payday Loan Rates