Act to Stop Usurious Payday Lending!
February 23rd, 2012
US Regulators receive letter from over 250 organizations and individuals on usurious loans.
Over 250 organizations and individual advocates – including the Oblates and other faith-based groups – have joined the call to stop banks from extending predatory payday loans. These loans carry triple-digit annual interest rates of as much as 400 percent.
Consumers can join the call for regulators to stop bank payday lending by signing a petition at: http://rspnsb.li/vZb3iH
Learn about the problem of predatory payday lending in this video from Center for Responsible Lending.
On Wednesday, February 22, the Consumer Financial Protection Bureau (CFPB) held a hearing in New York City about problematic checking account practices. Sarah Ludwig – Co-Director of NEDAP (Neighborhood Economic Development Advocacy Project) delivered a letter from the groups and individuals concerned about predatory lending directly to Richard Cordray, Director of the CFPB. The letter was sent to the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency (OCC) as well.
The Center for Responsible Lending is coordinating the campaign, and is asking us to keep the pressure on. You can help do this by spreading word of the effort through social media. If you can, please blog/tweet/or facebook yesterday’s action. Or print out information available from the Center for Responsible Lending to share with others and ask them to sign the on-line petition.
“Wells Fargo, a national bank, wanted to bring its direct deposit advance, its payday loan product to NY, notwithstanding our ban on payday loans,” Ms. Ludwig told Director Cordray and the other panelists at yesterday’s event. “That’s one reason we think federal action is so important. They backed off when NY groups went ballistic–New Yorkers are tough. But we also let them know that they weren’t going to do business here and get around our state usury law.”
Links to more information:
- Sign-on letter and the full list of signers (download PDF)
- CRL press statement
- Video on Payday Lending
- More information on this issue can be found on the Center for Responsible Lending website under Payday Lending.