Damarys Rolon needed to make some repairs to her home, but she never thought she’d lose her car because of it.
Rolon visited a Payday Cash Advance store in Lorain, Ohio, and took out a payday loan of $3,000. She was given a one-year loan repayment period, which she thought would be enough time to pay it back.
As has happened with so many victims of payday lending practices, Rolon found herself unable to meet the exorbitant fees that were tacked onto her loan.
She doesn’t even remember how much she paid in fees, but she was charged a $45-per-day late fee until she could get current. Asked about the experience, Rolon had this to say:
“The truth is, it was terrible. You go there with the intent to get out of a bind, but instead it’s worse. The payments were too high.”
To make matters worse, Rolon had offered up her car title as collateral, but since she was unable to pay the loan back according to the payday terms, she ended up losing her vehicle.
Rolon was finally able to pay back her original loan, but only after losing her car, struggling to pay her rent, falling behind on her bills, and having to choose between feeding her family or paying these lenders. Unfortunately, Rolon has not been able to access alternatives to these shady lenders. Still, she says taking out another payday loan is not in her future.
We’re working hard to put an end to these situations. Payday lenders have taken far too much from our community and must be stopped. That’s why we support a rule the Consumer Financial Protection Bureau (CFPB) is considering. It would regulate payday lending operations, and put in place critical protections for consumers.
Join us by adding your name to the petition to let CFPB Director Rob Cordray know that you support a strong rule that protects consumers and curbs underhanded lending practices.