PAYDAY REFORM ADVOCATES UNVEIL WEBSITE PRESSURING CFPB TO ACT

FOR IMMEDIATE RELEASE: January 11, 2016
CONTACT: Jacob Swenson-Lengyel, jacob@npa-us.org, 312.316.3973

PAYDAY REFORM ADVOCATES UNVEIL WEBSITE PRESSURING CFPB TO ACT

**** FamiliesCantWait.org ****

Chicago, IL -- While the media has largely focused on financial industry attacks on the Consumer Financial Protection Bureau, the CFPB is facing a new set of criticisms today -- this time from consumer advocates. Payday lending reform advocates unveiled a new website and will launch online ads this week criticizing the CFPB for delaying the release of a rule that would protect consumers from dangerous small dollar loans that trap more than 12 million Americans in an endless cycle of debt each year.

The site, www.FamiliesCantWait.org, launched by National People’s Action, shows that since the CFPB announced the rulemaking process and released the Small Business Regulatory Enforcement Fairness Act panel “first look” at the rule in March 2015, payday and title lenders have stripped roughly $7 billion from American families -- and counting. Advocates emphasize that each day the CFPB delays, families lose another $23,951,459. That adds up to $8,742,282,594 each year from families who live in states where these small dollar, high interest loans are allowed and doesn’t include online or installment lending.

“Congress gave the CFPB a clear cut mission to protect American consumers from unfair and deceptive financial products. Each day Director Cordray and the CFPB delay this rule, they are not only failing to fulfill their mission, they are failing American families,” said Liz Ryan Murray, Policy Director for National People’s Action. “Our families can’t wait, they need payday lending reform now.”

National People’s Action has called for a strong and broad small dollar lending rule that fulfills three basic criteria to protect American families. First, the rule should require basic underwriting practices on all loans to ensure American consumers can payback the loan when it is due. Second, the rule should put a stop to the constant loan rollovers that are endemic in the industry by limiting individual indebtedness to 90 days. Finally, the rule should prevent lenders from being able to take money directly from a consumer’s bank account or hold title to their car.

Next week, leaders with National People’s Action affiliates across the country will take action in front of payday and car title lending stores in their community and call on the CFPB to take action. For more information, or to interview Liz Ryan Murray, please contact Jacob Swenson-Lengyel at jacob@npa-us.org or 312.316.3973.

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National People's Action is a network of 29 grassroots organizations in 18 states working together to advance a racial and economic justice agenda for a new economy and true democracy.