Pay day loans are high-interest, short-term loans that needs to be compensated in complete as soon as the debtor gets their next paycheck

Might 16, 2019

ATTORNEY GENERAL RAOUL OPPOSES FEDERAL ROLLBACK OF COMMON-SENSE PROTECTIONS FOR CASH ADVANCE BORROWERS

Raoul & 24 solicitors General Oppose proceed to Rescind CFPB Rule made to Protect Consumers from Dangerous financial obligation Traps

Chicago — Attorney General Kwame Raoul today joined up with a coalition of 25 states opposing the customer Financial Protection Bureau’s (CFPB) efforts to get rid of guidelines protecting customers from abusive payday and car name loans. Raoul as well as the coalition filed responses with all the CFPB opposing the bureau’s proposed repeal of guidelines used in 2017 to guard consumers from extortionate interest levels as well as other predatory techniques that trap consumers in rounds of financial obligation, while preserving use of less-risky kinds of short-term credit.

The reviews presented today argue that eliminating the 2017 defenses, that have been set to go into impact in August 2019, would damage consumers, reduce states’ abilities to guard their residents from predatory financing, and it is inconsistent aided by the CFPB’s appropriate responsibilities to guard customers from unjust and abusive methods. Continue reading →