Consumer Advocates Urge Congress To Cap Payday Loan Rates

Consumer Advocates Urge Congress To Cap Payday Loan Rates

WASHINGTON, D.C. – Today, the middle for Responsible Lending (CRL), People in america for Financial Reform (AFR), and almost 40 nationwide and state businesses delivered a page urging users of Congress to pass through the Protecting Consumers from Unreasonable Credit Rates Act, a bicameral bill introduced by U.S. Senators Richard Durbin (D-Ill.) and Jeff Merkley (D-Ore.) and U.S. Representatives Matt Cartwright (D-Penn.) and Steve Cohen (D-Tenn.). The bill would protect consumers from predatory lenders by capping payday and car-title loans at a maximum of 36% apr (APR).

“Currently, payday and car name loan providers charge triple digit interest that is annual, frequently 300 % or more. A big human body of studies have demonstrated why these items are organized to produce a long-lasting debt trap that drains consumers’ bank reports and results in significant monetary damage, including delinquency and default, overdraft and non-sufficient funds charges, increased difficulty paying mortgages, lease, as well as other bills, lack of checking reports, and bankruptcy,” the team penned. “It is very important for Congress setting the exterior restriction from the cost-of-credit to control abusive financing.

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