The Consumer Financial Protection Bureau (CFPB’s) plans, under new leadership, to “reconsider” a rule that protects consumers from harmful payday and car title loans are a blatant effort to aid the powerful, predatory lenders who routinely trap these borrowers in a cycle of debt.
The current rule must be preserved because it requires lenders to determine a borrower’s ability to pay before issuing a loan. This will stop lenders from trapping consumers in loans that they cannot afford, with mounting interest, fees and bank penalties that make it even harder to repay these loans.
The rule was issued after years of CFPB research and analysis as well as advocacy from borrowers, civil rights advocates, a bipartisan group of legislators, and faith and community leaders. Their voices should not be discounted.