ACTION ALERT: Protect borrowers from harmful payday lending practices

October 4, 2016 – Share your comments by Friday, October 7. TAKE ACTION NOW!

One root cause of hunger we identified nearly 10 years ago is harmful payday and car title loan practices.

We hear stories like Lara’s, whose $800 payday loan turned into a debt of more than $4,000. As borrowers struggle to repay high amounts of interest and fees, they fall into a debt trap, leaving less money for feeding their families and meeting other basic needs.

In fact, in Oregon last year, payday and car title loan fees drained a whopping $16.6 million out of primarily communities with low incomes. Even though Oregon has strong payday lending laws, after accounting for fees and other charges, borrowers in the state pay an average of 154 percent APR.

The Consumer Financial Protection Bureau (CFPB) is working on a rule that would dramatically cut back on the payday lending industry’s most harmful practices. The rule establishes an “ability-to-repay” standard along with other provisions that will protect borrowers from falling into a debt trap that often leads to hunger and food insecurity.

The CFPB needs to hear from concerned people like you. Share your comments or your experience with harmful payday and car title loan practices.