As the Consumer Financial Protection Bureau (CFPB) considers new rules to address predatory practices in payday and similar types of lending, U.S. Senator Tim Kaine joined a group of more than 30 senators in expressing support for initial steps the agency has taken and urging the agency to issue strong rules to combat the “cascade of devastating financial consequences” that these high-priced loans often have on consumers.
“We support the CFPB’s initial steps towards releasing a proposed rule and urge you to issue the strongest possible rules to end the damaging effects of predatory lending,” the Senators wrote in a letter to CFPB Director Richard Cordray. “Small-dollar, short-term loans with astronomical interest rates that pull consumers into a cycle of debt are predatory. These loans have high default rates, including after the borrower has already paid hundreds or thousands of dollars because of triple-digit interest rates.”
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http://augustafreepress.com/sen-tim-kaine-urges-strong-rules-to-prevent-predatory-payday-lending-practices/
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