Take Action: Urge the CFPB to protect consumers from 400 percent APR loans and implement product safety standards that would save borrowers billions of dollars.
The Consumer Financial Protection Bureau (CFPB) has a chance to stop harmful payday loans and encourage safe, affordable lending. Without your help, it may miss this historic opportunity.
Borrowers and the public agree that payday loans should be more regulated. And borrowers report that they want three things: lower prices, small installment payments, and quick loan approval. Unfortunately, the CFPB’s draft proposal misses the mark.
Under the proposal, millions of people would still be exposed to 400 percent annual percentage rate (APR) payday loans while lower-cost alternatives would be locked out. But it is not too late to set simple and strong product safety standards to ensure that small loans are safer and more affordable.
Urge the CFPB to strengthen its rule to prevent the spread of 400 percent APR loans and ensure that mainstream financial institutions can better-serve borrowers at prices six times lower than payday lenders.
With your help, the CFPB rule could be improved and millions of borrowers could save billions of dollars a year.