CFPB’s Proposed Payday Lending Rules Are a Significant Step Towards Protecting Financially Vulnerable Communities from Predatory Wealth-Stripping Products

The proposed rules released by the Consumer Financial Protection Bureau (CFPB) this morning marks a significant step towards protecting consumers of small-dollar credit products from unscrupulous and predatory practices that are responsible for compromising the financial well-being of millions of low- and moderate income borrowers.

As a coalition committed to improving the opportunity for economic progress low‐ and moderate-income communities of color – The Asset Building Policy Network believes that vulnerable communities seeking to weather a short-term financial emergency should not be preyed upon, instead these communities should be provided with access to responsible and safe credit that does not put them into unwanted, long-term debt.

The CFPB’s long-awaited proposed rules take an important, and much needed, step toward achieving this goal. We applaud the Bureau for releasing their proposal and for the work it has done on this issue so far.

For more details about an individual Asset Building Policy Network member’s position on the CFPB’s proposed rules, please see the statements below*:

• Center for American Progress: CAP Experts: CFPB Rule is a Major Step Toward Reining in Predatory Debt Traps

• Corporation for Enterprise Development: Consumer Financial Protection Bureau’s Proposed Payday Lending Rules are a Significant Step Toward Protecting Vulnerable Borrowers

• National Council of La Raza: NCLR Praises CFPB Rule to Curb Predatory Payday Lending Practices

• The Leadership Conference on Civil and Human Rights: Civil and Human Rights Leader Testifies in Favor of Payday Lending Regulations for the Consumer Financial Protection Bureau

*The list of member statements will be updated as they are available.

To download a copy of this statement, click here.