​CFPB Rallies Support for Proposed Payday Rules as Congressman Hensarling Questions Limiting Access to Credit

By JD Alois, Crowd Fund Insider |  June 6, 2016

June 2, 2016 @ 2:58 pm By JD Alois

Richard CordrayThe Consumer Financial Protection Bureau announced a proposed set of rules today designed to curtail abuses within the Payday lending industry. CFPB Director Richard Cordray released a prepared statement on the proposal explaining;

“..our research has shown that too many of these loans trap borrowers in debt they cannot afford, instead of tiding them over in an emergency...”

The CFPB backed up their proposal with a conference call attended by the media. The following supporters of the rules took the opportunity to back the initiative. Participants included;

  • Mike Calhoun, president, Center for Responsible Lending
  • Rev. Willie Gable, chairman of the Faith and Credit Roundtable, pastor at the Progressive Baptist Church in New Orleans and chair of the Housing and Economic Development Commission of the National Baptist Convention USA Inc.
  • Ken Whittaker, a community leader with Michigan United who has firsthand experience with the debt trap
  • Hilary Shelton, director, NAACP Washington Bureau
  • Lindsay Daniels, associate director, Wealth Building Initiative, NCLR (The National Council of La Raza)
The gist of the session was; “any alternative to a Payday loan is a better alternative”.  The supporters believe there are sufficient alternatives for people in need of access to credit with one individual stating the rules may compel individuals to seek out a better option...

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Visit the Consumer Financial Protection Bureau:  http://www.consumerfinance.gov/