Payday lenders purposefully ensnare people in debt they can't escape. These legalized loan sharks collect 75 percent of their fees from people stuck in more than 10 loans a year by charging 300 percent APR. It's a debt trap.
We can rein in the worst payday lending abuses with a proposed rule from the Consumer Financial Protection Bureau. Payday lenders are fighting to keep their unfair and abusive practices going. It's up to us to make sure the CFPB hears loud and clear that we need to stop the debt trap once and for all.
To whom it may concern:
I support the CFPB's effort to stop the debt trap. Payday lenders create a debt trap that locks millions of Americans into a cycle of poverty they can't escape. Unaffordable payday loans cause borrowers to default on other bills and can lead to harms such as overdraft fees and even bankruptcy. Lenders must be required to ensure that every loan, regardless of duration or type, be able to be paid back affordably with enough money left over to cover normal expenses. The CFPB must protect families and ensure that money stays in their hands – not in the pockets of payday predators.
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Sincerely,
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