Lawyers’ Committee for Civil Rights Under Law Submits touch upon CFPB’s Notice of Proposed Rulemaking To Roll Back Payday Loan Rule

Lawyers’ Committee for Civil Rights Under Law Submits touch upon CFPB’s Notice of Proposed Rulemaking To Roll Back Payday Loan Rule

Washington, D.C. – Today, the Lawyers’ Committee for Civil Rights Under Law presented a touch upon the buyer Financial Protection Bureau’s Notice of Proposed Rulemaking (NPRM) to roll straight back the 2017 pay day loan payday loans OR Rule, which regulates payday advances, car name loans, as well as other forms of expensive loans targeted at low-income communities of color with dismal credit. The Lawyers’ Committee also published a study analyzing the economic impact of the loans, finding targeting that is disproportionate and problems for these communities.

The customer Financial Protection Bureau (CFPB) enacted the pay day loan Rule in October 2017 after many years of outreach, research, and writeup on over a million public reviews from customer advocates, payday loan providers, state regulators, yet others. The Rule desired to guard low-income consumers and consumers of color into the lending market that are usually victims of predatory loans that trap consumers in cycles of insurmountable financial obligation through excessive rates of interest. However, in 2018, the CFPB arbitrarily announced its intention to initiate a rulemaking to roll back the Rule, only three months after it was adopted january. Read more…