The Anti-Poverty Coalition of Greater Dallas has asked for our help to show support for the new payday and auto-title lender rules proposed by the Consumer Financial Protection Bureau (CFPB). New data shows payday and similar loans lead to consumers trapped in debt and CFPB's proposed rule aims to help those consumers.
When cash is tight, some people turn to payday and similar loans to make ends meet. Though these loans offer quick access to money, they often carry an average annual interest rate of over 300 percent, in addition to other fees. For some people these loans become debt traps.
The CFPB is working to end payday debt traps. Their proposed rule would require lenders to determine whether borrowers can afford to pay back their loans. The proposed rule would also cut off repeated debit attempts that rack up fees and make it harder for consumers to get out of debt. These strong proposed protections would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment loans.
The Anti-Poverty Coalition would like our supporters and clients to submit comments to StopTheDebtTrap.org. The most powerful comment is a personal story on how payday or auto-title loans have impacted you or your community.
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