Customer Federation of America. Most Recent Press Releases

Subject Material Professionals

Rachel Gittleman

Financial Solutions and Membership Outreach Manager

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

    • Most Recent Testimony and Reviews

  • CFA Urges Massachusetts Finance Board to safeguard Consumers by reducing the Interest Rate Cap
  • CFA and Other Groups Oppose OCC’s Proposed Rule to Pressure Banking institutions to guide 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 New Affordability Requirement, but questions that are important

    Washington D.C.—Today, the buyer Financial Protection Bureau released a proposed guideline to guard customers through the damage caused by payday, vehicle name as well as other loans that are abusive. The guideline, released in advance of the field hearing in Kansas City, Missouri includes most of the helpful provisions within the very first draft for the guideline released in March 2015, but prevents in short supply of using an ability to settle standard according to earnings and costs to any or all payday and vehicle name loans.

    “The proposed guideline released today is the better possibility customers have actually at avoiding further damage caused 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 look at a borrower’s earnings and expenses and also make a reasonable dedication that, at the conclusion associated with thirty days, there clearly was enough money left to pay for cost of living and loan re re payments without difficulty or re-borrowing with additional interest.”

    The proposed rule shall enhance upon current customer protections in states where payday and automobile name financing is authorized by:

  • Producing brand new consumer defenses for short-term and long-lasting payday and automobile title loans – this broad range is crucial to stop the extensive evasion strategies the industry has utilized in order to avoid complying with several state laws and regulations. The guideline will connect with short- and payday that is long-term vehicle title loans and address loans created by storefront and online loan providers.
  • Needing loan providers to totally think about a borrower’s power to repay that loan in complete without hardship or extra borrowing – the proposed guideline sets tough brand new requirements for many loans and certainly will need loan providers to examine earnings and costs to make sure that the debtor has the ability to make loan re re re payments without falling behind on housing, meals, son or daughter care, medical or other debts.
  • Protecting borrowers’ bank accounts – early in the day in 2010, CFPB research unearthed that online payday lending triggered a minumum of one overdraft or NSF charge for approximately half of all of the borrowers and the ones borrowers paid on average $186 in charges each year along with triple digit rates of interest along with other charges. The proposed guideline would need lenders to inform borrowers of future payments and contact a debtor after two attempts that are unsuccessful gather a repayment and reauthorize usage of a borrower’s banking account. The proposed guideline would additionally avoid loan providers from making use of other collection products, such as for instance 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 an incredible number of consumers searching for short-term credit in a long-term period of financial obligation. Borrowers will likely to be better protected, but further changes are essential to remove the side effects of triple interest that is digit and coercive collection methods,” said Feltner.

    The rule that is final add extra protections to prevent loopholes by needing consideration of a borrower’s power to repay for many loans without exclusion. The proposed guideline will allow loan providers to produce as much as six loans per without considering a borrower’s ability to repay the loan year. Also one unaffordable loan could cause long-lasting monetaray hardship. This concerning exemption to the basic capability to repay requirement should always be eliminated when you look at the final guideline.

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    Into the coming months, extra analysis of this proposed guideline should be available. To learn more, contact Tom Feltner at 202-610-0310, or follow him on twitter at

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