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SPLC urges Consumer Finance Protection Bureau to close loopholes in proposed rule to rein in predatory lending

The SPLC has submitted comments to the Consumer Financial Protection Bureau (CFPB) in support of a proposed rule to protect low-income borrowers from predatory lending practices.

The rule sets higher standards for payday, auto title and other high-cost installment loans but falls short of requiring lenders to make a full and accurate determination of a borrower’s ability to pay.

The SPLC encourages the CFPB to examine and close loopholes in the proposed rule that will still leave many consumers vulnerable to the industry’s debt trap.

For more information about the harm caused by payday and auto title lenders, read the SPLC report Easy Money, Impossible Debt: How Predatory Lending Traps Alabama’s Poor.