Big Win: After Long Campaign, National People's Action Applauds Regulators For New Rules That Curtail Payday Lending, Calls on Federal Reserve to Join

For Immediate Release: Thursday, November 21, 2013

Contact: Doug Gordon (202) 494-5141, doug@fitzgibbonmedia.com

 

Big Win: After Long Campaign, National People's Action Applauds Regulators For New Rules That Curtail Payday Lending, Calls on Federal Reserve to Join

Today, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) released new guidance that would rein in banks from making predatory loans that trap borrowers in a cycle of debt with 300% interest. National People's Action (NPA) has been helping to lead a campaign on this issue for months. 

Conspicuously absent in calling for an end to these predatory practices is the Federal Reserve, which regulates two of the banks that offer these products, Regions and Fifth Third banks.  NPA urges the Federal Reserve to join its regulator colleagues immediately in calling for a halt to this toxic bank product.

 Following the release of the guidance George Goehl, Executive Director of NPA, released the following statement:

 "This is what it looks like when regulators get it right.  We applaud the OCC and the FDIC for standing up for everyday families, and now call on the Federal Reserve to immediately follow suit. 

“We need banks to help families build wealth, not strip it away.  Today’s guidance is a step toward pushing banks in that direction.  Preceding this guidance, too many big banks have been issuing payday loans with triple-digit interest rates that prey on some of our nation’s most vulnerable people. 

“Because this guidance only impacts banks regulated by the FDIC or OCC, we now call on Federal Reserve Chairman Ben Bernanke and the Federal Reserve Board to issue a similar rules." 

NPA has been working with allies for months to help force today's action. NPA has:

·      With partner organizations, including CREDO and Color of Change, submitted 157,000 signatures to the Fed, FDIC and OCC, calling for them to get the banks out of payday lending; 

·      Met with key regulators on the issue in February; 

·      Joined with 160 other organizations to send a letter to the Administration demanding today's action; 

·      Worked with Congressional allies to pressure the Administration to move in this direction. 

 

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Campaign: 
Stop Predatory Lending