After years of research and public consultation, the Consumer Financial Protection Bureau this month issued a final rule to create new protections for payday loan borrowers. These new protections are a necessary and positive first step in eliminating the debt trap that so often results from high-interest, predatory loans — and nowhere more than Oklahoma, where we have the highest payday loan usage rate in the nation.
The new protections won’t close off all access to expensive loans, but they will curb the practices most likely to catch borrowers in debt traps, with mounting fees and interest charges on loans they simply cannot afford to pay back.
But we’re not out of the woods quite yet. This new rule could face strong opposition from the predatory loan industry and from Congress, and we must continue speaking out to ensure that these protections go into effect.
Continue Reading »