It’s been almost a year since the Consumer Financial Protection Bureau (CFPB) released their preliminary proposal to regulate payday and other small-dollar lending, and still consumers have no federal protections against predatory small dollar lending.
So why hasn’t the CFPB taken action yet? One of the biggest factors has been the continuous and intense pushback from the payday lending industry — and Congress.
While attacks on the Bureau by the industry and members of Congress are nothing new, what is new is that these attacks have recently started to come from both sides of the aisle. Even more surprising, members like Debbie Wasserman Schultz, Chair of the Democratic National Committee, are now working to block the CFPB from protecting consumers against predatory payday lending.
The efforts by the chairwoman and a majority of the Florida congressional delegation have coalesced around H.R. 4018, the "Consumer Protection and Choice Act," which would not only delay the CFPB payday rules by two years, it would also endorse Florida’s debt trap payday model — which strips $280 million from lower-income Floridians — as a nationally recognized and federally exempted model for other states to implement.
Consumers have waited long enough for the CFPB to act, and they’ve lost billions of their hard-earned cash in the process. Congress should not make them wait any longer and should let the CFPB finish the job it started. Tell Congress to reject this damaging bill:
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Send a Tweet in support of the CFPB’s efforts (and tag your Representative so he or she gets the message!):
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Call your U.S. Representative and tell them to reject this damaging bill:
My name is [your name] from [your organization or coalition], and I’m calling to request that you oppose H.R. 4018, as well as any effort to weaken the CFPB’s ability to protect consumers against predatory payday lending practices.
This bill would codify a number of payday industry-backed practices and recognize Florida’s industry-backed payday lending model — which strips $280 million from lower-income Floridians — as one that other states should follow. H.R. 4018 would harm consumers across the country and would undermine the CFPB’s ability rein in an industry that thrives on stripping financially vulnerable borrowers of their hard-earned money and trapping them in a cycle of long-term debt.
Thank you for everything that you do on behalf of consumers everywhere.
Corporation for Enterprise Development
The Assets &Opportunity Network team
CFED - Corporation for Enterprise Development
1200 G Street, NW Suite 400
Washington, DC 20005