Payday loan rule flawed, say ERLC, others

By Tom Strode, Baptist Press |  August 31, 2016

WASHINGTON (BP) -- ...The Ethics & Religious Liberty Commission (ERLC) united earlier this month with other organizations in the Faith for Just Lending Coalition to call on a federal agency to close what the groups describe as a loophole that violates the entity's own "borrower's ability-to-repay standard." The rule proposed in June by the Consumer Financial Protection Bureau (CFPB) would permit a lender to make payday loans of 300 percent interest six times a year...

The bureau's allowance of six, 300 percent interest payday loans annually, however, "not only contradicts our own faith traditions, but also contradicts the CFPB's own reasoning laid out in its proposal," said the Faith for Just Lending Coalition.

Willie Gable, chairman of the Housing Commission of the National Baptist Convention USA, said at the news conference, "Such a gaping loophole is, in my opinion, essentially a sanction of these predatory products, not a step forward to rein them in."...

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