Experiencing misled, scammed and eventually threatened by high-interest price car and payday name loan providers, Virginians are pleading with federal regulators to not ever rescind a proposed groundbreaking guideline to rein in abuse.
Tales from nearly 100, attached with a Virginia Poverty Law Center page asking the customer Finance Protection Bureau not to ever gut the guideline, stated these triple-digit interest loans leave them stuck in some sort of financial obligation trap.
VPLC Director Jay Speer stated the guideline that the CFPB is thinking about overturning — needing loan providers to check out a borrower’s actual power to repay your debt — would stop most of the abuses.
“Making loans that a debtor cannot afford to settle may be the hallmark of that loan shark and never a genuine lender,” Speer penned in the page towards the CFPB.
The proposed guideline had been drafted under President Barack Obama’s management. The agency has reversed course, saying the rollback would encourage competition in the lending industry and give borrowers more access to credit under President Donald Trump. Continue reading