CFPB Eliminates Consumer Protections from Payday and Automobile Title Loans During COVID-19 Pandemic

CFPB Eliminates Consumer Protections from Payday and Automobile Title Loans During COVID-19 Pandemic

Important Georgia Usury Cap should always be Expanded to safeguard Consumers through the financial obligation Trap

Yesterday, the buyer Financial Protection Bureau (CFPB) eliminated customer defenses against predatory payday and automobile title lenders, leaving Georgia families subjected to the harms of vehicle name financing. While Georgia’s usury limit provides defenses through the cash advance debt trap, abusive automobile title lending nevertheless plagues Georgia. Presently, their state doesn’t regard this sort of predatory lending as a small-dollar loan, but alternatively permits vehicle games to be “pawned” with interest rates because high as 300 %.

“This may be the worst time that is possible expose Georgia customers to predatory loan providers. The financial crisis stemming through the COVID-19 pandemic actually leaves numerous families struggling to have by,” said Liz Coyle, executive manager of Georgia Watch. “To protect Georgians in this time that is financially unstable the legislature should implement a 36% limit on all small-dollar loans, including vehicle name and installment loans. We also urge Congress to enact H.R. 5050, a bill to determine a interest that is strong limit to prevent predatory methods throughout the nation.”

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