![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
Many households facing financial struggles may look to short term loans in order to cover emergency expenses. In some states, payday lending companies that claim to provide needed support charge interest rates of 300% or more to borrowers. Steep interest rates and hidden fees can often surprise and trap those not able to quickly repay loans. This leads too many families into a “debt trap” that requires them to continue to take out more payday loans just to keep their regular bills paid. Right now, the Consumer Financial Protection Bureau (CFPB) has the power to curb this predatory debt trap.
The CFPB has released newly proposed payday lending rules. The proposed rules are now open for public comment, allowing individuals, community leaders and congregations to weigh in on payday lending policy. Among several provisions, the CFPB’s proposed rules would enforce regulations to protect consumers from usurious loans ,ensuring that lenders set fair loans, and take steps to determine if borrowers can make repayments.
If you would like to comment on the proposed rules, ELCA Advocacy has a handy-dandy form you can use. As always, if you are not a Christian, you can edit out the sentence and a half that refers to Christianity, or you can email them. The proposed rules are Docket No. CFPB-2016-0025 and they are discussed here.
