There’s not much time and your help is needed in pushing for stronger federal payday lending rules. Please sign this letter today from the Coalition on Homelessness and Housing in Ohio (COHHIO) to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. Director Cordray is in the process of finalizing key elements of the federal payday lending rules. While we applaud Mr. Cordray’s overall direction, there are concerns about loopholes in the proposal. Because of Ohio’s own regulatory shortfalls, the current plan would not make our state much, if any, safer from abusive lending tactics. You’ll remember the tough battle that was fought seven years ago against this whack-a-mole industry. That battle was won, but the war was lost, because payday lenders exploited unforeseen loopholes. Today we’re back to interest rates approaching 500% APR and a burgeoning auto title loan industry, where the stakes are even higher.
Right now in Ohio, strong federal rules are the only real way to protect people caught in the payday lending debt trap. National partners, including the Center for Responsible Lending and the Consumer Federation of America, agree that CFPB’s current draft proposal needs to be stronger. The attached letter outlines their requests, including strengthening the long-term ability to repay rule; strengthening underwriting rules for every loan; and expanding safeguards to prevent the flipping of short term loans into long-term nightmares. If you are authorized to speak for your agency, please sign this letter today to CFPB Director Richard Cordray. Tell him his home state needs him to step up with stronger rules to stop the debt trap! Please sign today. The deadline is end of business Friday, August 7.