06.02.2016

NEW YORK – The Center for Popular Democracy cheered newly proposed rules from the Consumer Financial Protection Bureau that would tighten the reins on payday lenders, an industry long criticized for keeping consumers in a cycle of never-ending debt with exorbitant interest rates on short-term loans. The proposed regulations require lenders to consider a borrower’s ability to repay the loan in full, create new consumer protections for short-term and long-term payday and car title loans, and protect borrower’s bank accounts.

Ana Maria Archila, Co-Executive Director of the Center for Popular Democracy, released the following statement:

“These commonsense rules will finally start pushing back on the predatory practices of payday lenders. Payday lending is one of the worst examples of how our financial system takes advantage of communities of color. These institutions are common in black and brown communities and pitched as a legitimate banking service. Thousands of dollars in fees later, borrowers are left mired in debt. The proposed rules would make it more difficult for these companies to thrive off of such abusive practices.

Not only should we work to strengthen this rule before it is finally adopted, we must also defend it from almost certain right-wing attacks. The payday industry has never had qualms about using large campaign contributions and flashy ad campaigns to keep their interests in order and we should expect the same in light of these rules.”

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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.

Contact:

Asya Pikovsky, apikovsky@populardemocracy.org, 207-522-2442

Anita Jain, ajain@populardemocracy.org, 347-636-9761