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California Advocates Criticize Trump Management for Dismantling Protection for Payday Loan Borrowers

California Advocates Criticize Trump Management for Dismantling Protection for Payday Loan Borrowers

FEDERAL PROPOSAL MAY COST CALIFORNIANS VAST SUMS IN FEES FOR UNAFFORDABLE LOANS

BAY AREA, might 15, 2019 – The California Reinvestment Coalition (CRC) presented a page to your Consumer Financial Protection Bureau (CFPB) yesterday, sharply criticizing the Bureau’s Trump-appointed manager Kathy Kraninger, for delaying and/or eliminating an “ability to repay” requirement included in brand brand new federal rules for payday, vehicle name, and high-cost installment loans. The necessity had been slated to get into effect in August 2019, nevertheless the CFPB is currently proposing to either cure it or postpone implementation until Nov 2020, and it is searching for input that is public both proposals.

“After four many years of research, hearings and public input, we thought borrowers would finally be protected through the ‘debt trap’ by this common-sense rule,” explains Paulina Gonzalez-Brito, executive manager of CRC. “The ‘ability to repay’ requirement would have already been a straightforward and effective method to safeguard low-income families from predatory lenders while preserving their usage of credit. (more…)