Americans for Financial Reform: Consumer and civil rights groups send letters to FDIC, Office of the Comptroller of the Currency, and Fed urging them to prevent bank payday loans

0

WASHINGTON, June 11 – Americans for Financial Reform issued the following press release:

* * *

– Letters arrive after announcement that regulators are pursuing a common policy of small dollars

– Growing concern that several people appointed by the Administration could give the green light to abusive loans

* * *

Today, Americans for Financial Reform joined a coalition of national consumer and civil rights groups in writing to leading banking regulators on the importance of preventing banks from reissuing loans payday loans that trap people in a cycle of debt. The groups highlighted a recent letter from more than 400 organizations to Consumer Financial Protection Bureau (CFPB), which “highlighted the dangers of payday loans issued by banks in addition to those of non-bank payday lenders.”

These new letters were sent to Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC) and the Federal Reserve (Fed) by Americans for Financial Reform, on Center for Responsible Lending, Consumers Federation of America, The Leaders’ Conference on Civil and Human Rights, the NAACP, and the National Center for Consumer Law (on behalf of its low income clients).

The letters urged regulators to “listen to the voices of Americans across the country who have spoken so strongly against high cost lump sum loans.”

The letters also emphasized: “When bank payday loans were in the market, two-thirds of the fees came from people who borrowed an average of 15 times or more per year, many of whom took loans 10 months or more per year.”

A link to a letter to FDIC is here (http://ourfinancialsecurity.org/2019/06/letter-regulators-comment-fdic-bank-payday-loans/).

A link to a letter to OCC is here (http://ourfinancialsecurity.org/2019/06/letter-regulators-comment-occ-bank-payday-loans/).

A link to a letter to the Fed is here (http://ourfinancialsecurity.org/2019/06/letter-regulators-bank-payday-loans/).

The letters echo recent concerns about the National Administration of Credit Unions proposal to relax the standards of the alternative payday loan (ALP) program.

Leave A Reply

Your email address will not be published.