The Progressive


A project of Common Dreams

For Immediate Release

Greg Williams, Communications Director / (o) (202) 783-3566 x101 (m) (443) 854-1405

Consumer Protection Agency Unveils New "Payday" Lending Rules

Religious Anti-Poverty Coalition Releases Statement


The Consumer Financial Protection Bureau releases new rules governing "payday" lending - high interest loans that affect low-income communities. New regulations assess a borrower's ability to repay loans and meet basic living expenses. Payday lenders are now prevented from directly withdrawing funds from a borrower's bank account under certain circumstances.

Eric LeCompte, executive director of the religious anti-poverty coalition Jubilee USA releases the following statement:

"These new payday rules mark an important step forward for responsible lending and borrowing.

"Nobody should take out high-interest loans that can make a bad economic situation even worse.

"Some borrowers lose their bank accounts because of overdrafts when payday lenders directly extract funds. Access to a bank account is important for individuals struggling financially.

"Some payday lending is actually predatory lending. Predatory practices must be discouraged.

"These rules are a good first step. We also need strong state laws and we need Congress to support these rules."

Read more about payday lending

Jubilee USA Network is an interfaith, non-profit alliance of religious, development and advocacy organizations. We are 75 U.S. institutions and more than 750 faith groups working across the United States and around the globe. We address the structural causes of poverty and inequality in our communities and countries around the world.

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