June 2, 2016 public statement
Habitat for Humanity applauds Consumer Financial Protection Bureau for proposing rule to regulate payday debt traps
WASHINGTON (June 2, 2016) – Recognizing that the payday loan industry is trapping many low-income Americans in a harmful debt cycle, the Consumer Financial Protection Bureau today announced a proposed national rule to curb predatory lending practices.
“Habitat for Humanity applauds the Consumer Financial Protection Bureau’s proposal for curbing predatory lending practices that will require lenders who offer payday loans and other small-dollar advances to assess a consumer’s ability to repay before issuing a loan,” stated Andrew Szalay, director of State and Local Relations at Habitat for Humanity International. “We look forward to working with the CFPB to strengthen provisions to ensure the final rule prevents the harm of unaffordable debt.”
Habitat supports the creation of a uniform standard for payday and car title loans that, while allowing for states to impose stricter regulations should they so desire, addresses the negative financial consequences that a cycle of unaffordable debt imposes on individuals, communities and our economy as a whole.