Statement from Senator Elizabeth Warren on CFPB's New Payday Lending Rule
Washington, DC - U.S. Senator Elizabeth Warren issued the following statement after the Consumer Financial Protection Bureau (CFPB) released its new rule on payday lending:
"Payday lenders don't make their high profits on ordinary small-dollar loans. The big bucks come from trapping a portion of the borrowers in a cycle of debt that crushes families and sucks money out of communities that can least afford it. The CFPB's new rule will stop these abuses and, once again, help level the playing field for all families."
The new rule, which is aimed at stopping payday loan debt traps, requires lenders to determine in advance whether consumers can afford to repay their loans and applies to loans that are due in full by the borrower's next paycheck. The rule also includes a provision that restricts lenders' repeated attempts to collect payments from a borrower's bank account.
More information on the rule is available here.
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