Today, the Consumer Financial Protection Bureau (CFPB) held a field hearing to share their recommendations for stopping the predatory lending debt trap. The recommendations could create strong consumer protections for payday loans, vehicle title loans, deposit advance products and certain high-cost installment and open-end loans.
Idaho Community Action Network, which has actively lobbied for policy restrictions on the industry like a cap on interest rates, believes this proposal is a significant step in the right direction and will directly benefit Idaho communities. The emergence of national solutions that address the debt trap and wealth stripping plaguing our families and communities across the nation is a significant development in the movement for consumer protection.
This proposal takes a major step toward protecting families and their hard-earned money. For Idaho, these national solutions can alleviate the struggle for families who, frankly, have enough to deal with in a state with low wages and restrictive access to health care. Considering that each year around $64 million is being stripped from Idaho’s local economies, families don’t have more to give. It’s like squeezing blood from a turnip.
With more storefronts than Starbucks, the small dollar loan industry has shown blatant disregard for common sense practices, including basic affordability underwriting. Continue reading