News Release. Report: Review of Payday Complaints Reveals Requirement For More Powerful Federal Protections
CONTACT:Mike Litt, U.S. PIRG Education Fund workplace: (202) 461-3830 Cell: (702) firstname.lastname@example.org
Report: Review of Payday Complaints Reveals Requirement For More Powerful Federal Protections
Washington, D.C. – customer complaints about payday advances towards the customer Financial Protection Bureau (CFPB) reveal a need that is critical strengthening the agencyвЂ™s proposed guideline to rein in pay day loans along with other high-cost financing, in accordance with a written report released today by the U.S. PIRG Education Fund.
вЂњOur analysis of written complaints towards the CFPB discovered significant proof of the problem that is major pay day loans:
borrowers canвЂ™t manage these loans and find yourself caught in a period of financial obligation. Ninety-one(91 that is percent) of written complaints had been associated with unaffordability,вЂќ said Mike Litt, Consumer Advocate utilizing the U.S. PIRG Education Fund.
Some key findings:
- Ninety-one % (91%) of all of the written explanations revealed signs of unaffordability, including abusive commercial collection agency techniques, banking account closures, long-lasting rounds of financial obligation, and bank charges like overdraft costs as a result of collection efforts.
- The database reveals issues with a complete spectrum of predatory services and products, including storefronts and online loan providers, short-term payday, long-lasting payday installment loans, and car name loans.
- Over fifty percent (51%) regarding the payday complaints had been submitted about simply 15 businesses.…