Tell the CFPB to Issue Stricter Predatory Loan Rules

New Jersey Citizen Action has been waging a very active campaign to persuade the CFPB  to issue the strongest payday and car title lending rule possible.

Here is link to letter from New Jersey organizations asking CFPB for a strong rule:

On June 2, the Consumer Financial Protection Bureau issued a proposed national rule meant to rein in abusive payday and car title lending.  The rule is a good start, but includes loopholes that could undermine the state 30% usury cap and other consumer protection laws in place in New Jersey.  The proposed rule gets the fundamentals right by establishing an ability‐to‐repay principle, based on income and expenses, at the core of the rule. However, the proposal exempts six high‐cost payday loans from an ability‐to repay requirement altogether.

The rule also fails to provide explicit reinforcement of state debt trap prohibitions and bans in states like New Jersey.  The Consumer Financial Protection Bureau cannot issue a national cap, but it can reinforce state laws by declaring any violation of state, such as the making or marketing of illegal loans, usury and other consumer protection laws an unfair, deceptive, and abusive act or practice.

The public has until October 7th to write the Bureau's Director, Richard Cordray –  with comments on the proposed rule. Citizen Action is urging individuals, organizations and elected officials to send in comment letters by clicking the link here: