“Caught in a trap”: Virginians describe payday loans to their experiences, urging feds to modify

“Caught in a trap”: Virginians describe payday loans to their experiences, urging feds to modify

Experiencing misled, cheated and eventually threatened by high-interest price payday and automobile name loan providers, Virginians are pleading with federal regulators not to rescind a proposed groundbreaking guideline to rein in abuse.

Stories from almost 100, attached with a Virginia Poverty Law Center page asking the customer Finance Protection Bureau to not ever gut the guideline, stated these interest that is triple-digit loans leave them stuck in some sort of debt trap.

VPLC Director Jay Speer stated the guideline that the CFPB is thinking https://georgiapaydayloans.net about overturning — needing loan providers to check out a borrower’s real capability to repay your debt — would stop most of the abuses.

“Making loans that the debtor cannot afford to repay may be the hallmark of that loan shark and never a legitimate lender, ” Speer composed in his page into the CFPB.

The proposed guideline had been drafted under President Barack Obama’s administration. Read More