Calls for CFPB to issue strong rules on payday lending

The Hill reports:

The chairs of the congressional progressive, Hispanic and Black caucuses are urging financial regulators to crack down on payday loans.

In a joint letter to Consumer Financial Protection Bureau Director Richard Cordray, Congressional Progressive Caucus Co-Chairs Keith Ellison (D-Minn.) and Raúl Grijalva (D-Ariz.), Hispanic Caucus Chair Linda Sánchez (D-Calif.) and Black Caucus Chair G.K. Butterfield (D-N.C.) called for strong rules to stem predatory practices that are based on exorbitant interest rates and high fees.

The letter is posted here.

A March 2014 CFPB report on payday loans found that a majority of the loans are rolled over or renewed within 14 days and that borrowers often pay more in fees than the amount originally borrowed.

The CFPB is expected to issue regulations for payday loans in the next month or two. Last month, the New York Times reported on the topics that the regulations are expected to address.

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