CFPB Releases Final Payday Rule in Win for Consumers
WASHINGTON, DC—Today, the Consumer Financial Protection Bureau (CFPB) announced the release of the final payday rule that would curb predatory lending practices that have left countless American families in dire financial straits. The CFPB rule announcement comes after the conclusion of their public comment period and weeks of peer review conducted by other financial agencies.
Throughout the months-long comment period, UnidosUS had gathered thousands of signatures in support of a strong rule for the abusive industry. As part of a broader coalition of groups, the organization also helped gather 400,000 comments from community members, many of whom have been directly impacted by predatory loans.
“We are very pleased to see the CFPB take long-awaited action against an industry that preys upon working families which has resulted in devastating financial consequences, especially in communities of color. We are grateful to CFPB Director Richard Cordray and his team and the millions of people all over the country who weighed in with the Bureau to make this happen,” said UnidosUS President and CEO Janet Murguía.
Latinos and other communities of color have been heavily targeted by both storefront and online payday lenders. Studies have shown that race and ethnicity are leading determining factors when payday lenders select the physical locations of their stores.
“Clearly, more needs to be done to rein in these uniquely unscrupulous lenders. States can push for interest rate caps to complement the CFPB’s rule and play an even greater role in ensuring consumers do not fall into debt traps. But today’s rule is a step in the right direction, but more can certainly be done to close loopholes and provide more robust oversight, given that a vast majority of Americans support oversight and rules that help protect consumers,” Murguía concluded.