Congress Calls for Stricter Rules on Payday Lending

June 12th, 2015

Minority members of the Senate Banking Committee on Banking, Housing and Urban Affairs are calling for stronger rules to reign in abusive payday lending.  Under the leadership of Senator Sherrod Brown (D-OH), Committee Ranking Member, 30 Senators signed a letter to Director Richard Cordray of the Consumer Financial Protection Bureau (CFPB) urging the agency to consider tougher restrictions on the lending sector.

The CFPB is already working on payday lending rules, but has not yet released a draft of the proposed rules.  “We support the CFPB’s initial steps towards releasing a proposed rule and urge you to issue the strongest possible rules to end the damaging effects of predatory lending,” the Senators wrote in the letter, “We appreciate your attention to this issue and hope you will soon issue strong rules to address the predatory lending practices that will only continue to harm consumers without swift action.”  The Senators’ suggestions are likely to speed up the release timeline for the new proposed rules.

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