Consumer Protection Agency Unveils New "Payday" Lending Rules

Jubilee USA

For Immediate Release

Organization Profile: 
Contact: 

Greg Williams, Communications Director
greg@jubileeusa.org / (o) (202) 783-3566 x101 (m) (443) 854-1405

Consumer Protection Agency Unveils New "Payday" Lending Rules

Religious Anti-Poverty Coalition Releases Statement

WASHINGTON - 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

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Jubilee USA Network is an alliance of more than 75 US organizations and 650 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org

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