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New Federal Regulations Will Soon Affect Pay Day Lenders

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Last month, the Consumer Financial Protection Bureau  issued a report on online payday loan payments  and plans to release a set of regulations governing the industry in the near future. These regulations will require the lender to assess the borrowers ability to repay before giving a loan. They will also limit the lenders’ access to borrowers’ bank accounts which will ease the high transfer fees borrowers are charged in addition to the excessive interest they are charged.  A fact sheet summarizing the proposals under consideration is available at: http://files.consumerfinance.gov/f/201503_cfpb-proposal-under-consideration.pdf

WISDOM, JONAH’s connection to state-wide justice activity, is part of a coalition of groups that is working to encourage the federal government to more closely regulate the Pay Day Lending industry. Last week, WISDOM leaders participated in an event to kick off the period in which citizens can offer comments on the federal regulations. This article from the Capitol Times is typical of the considerable press coverage given the event.

Historically, JONAH has worked on the Pay Day Lending issue and will continue to do so because pay day lending takes advantage of our poorest and most marginalized community members. It preys on desperate people and steals what little they have.

Once the regulations are released, JONAH will sponsor an event and gather signatures in favor of restrictions on pay day lending. Watch for further details.