Customer Federation of America. Many Recent Press Releases

Subject Matter Specialists

Rachel Gittleman

Financial Solutions and Membership Outreach Manager

  • Advocates Applaud Senate Repeal of nationwide Banking Regulator’s Predatory Lending Rule; Urge the homely house to do something quickly
  • Brand Brand New Bank Regulator Leadership Welcome
  • Bipartisan selection of 25 State Attorneys General Urge Congress to Repeal OCC “True Lender” Rule

    • Most Recent Testimony and Responses

  • CFA Urges Massachusetts Finance Board to guard Consumers by bringing down the Interest Rate Cap
  • CFA and Other Groups Oppose OCC’s Proposed Rule to stress Banking institutions to guide https://nationaltitleloan.net/installment-loans-or/ Predatory Lending
  • CFA along with other Groups Express Concerns to OCC About Oportun’s Application for the nationwide Bank Charter

    • Proposed Rule Creates Intense Brand Brand New Affordability Requirement, but questions that are important

    Washington D.C.—Today, the buyer Financial Protection Bureau circulated a proposed guideline to guard customers through the damage caused by payday, vehicle name as well as other abusive loans. The guideline, released in advance of the industry hearing in Kansas City, Missouri includes lots of the helpful provisions contained in the draft that is first of rule released in March 2015, but prevents in short supply of using an capability to settle standard predicated on earnings and costs to any or all payday and vehicle name loans.

    “The proposed guideline released today is the better opportunity customers have actually at avoiding further harm brought on by payday and vehicle name loans,” stated Tom Feltner Director of Financial Services at customer Federation of America. “Getting this guideline right means needing loan providers to completely start thinking about a borrower’s earnings and costs and also make a determination that is fair, by the end associated with thirty days, there was enough money kept to pay for bills and loan re payments without difficulty or re-borrowing with extra interest.”

    The proposed guideline shall enhance upon current consumer defenses in states where payday and vehicle title financing is authorized by:

  • Producing brand new customer protections for short-term and long-lasting payday and vehicle name loans – this broad range is important to avoid the extensive evasion techniques the industry has utilized to prevent complying with numerous state legislation. The guideline will affect short- and long-lasting payday or vehicle name loans and address loans created by storefront and online loan providers.
  • Needing loan providers to completely start thinking about a borrower’s power to repay that loan in complete without difficulty or borrowing that is additional the proposed guideline sets tough brand brand new criteria for many loans and can need loan providers to examine earnings and costs to ensure the debtor has the ability to make loan re re payments without falling behind on housing, meals, kid care, medical or other debts.
  • Protecting borrowers’ bank accounts – previously this season, CFPB research discovered that online payday lending triggered a minumum of one overdraft or NSF cost for approximately half of all of the borrowers and people borrowers paid on average $186 in costs each year along with triple interest that is digit as well as other costs. The proposed guideline would need loan providers to alert borrowers of future payments and contact a debtor after two unsuccessful tries to gather a repayment and reauthorize usage of a borrower’s bank-account. The proposed guideline would additionally prevent loan providers from utilizing other collection products, such as for example a borrower’s debit card or check that is electronic circumvent this security.

    • “The CFPB is proposing sweeping changes to a business that, for many years, has caught scores of customers searching for short-term credit in a long-lasting period of financial obligation. Borrowers will soon be better protected, but further modifications are essential to get rid of the harmful results of triple interest that is digit and coercive collection practices,” said Feltner.

    The last guideline should consist of extra protections to stop loopholes by needing consideration of a borrower’s capability to repay for several loans without exclusion. The proposed guideline allows loan providers in order to make as much as six loans per 12 months without considering a borrower’s capacity to repay the mortgage. Also one unaffordable loan could cause long-lasting hardship that is financial. This concerning exemption to your basic capability to repay requirement should really be eliminated when you look at the rule that is final.

    Into the coming days, extra analysis regarding the proposed guideline will likely be available. To find out more, contact Tom Feltner at 202-610-0310, or follow him on twitter at

    The buyer Federation of America is a national company greater than 250 nonprofit consumer teams that ended up being launched in 1968 to advance the buyer interest through research, advocacy, and training.