CFPB Seeks Pay Day Lending Abuses
Consumer Finance Protection Bureau (CFPB) is seeking examples of abuses by pay day lenders. The agency was created in 2010 legislation and includes a special office to assist military families with financial matters. Since 2005, FRA has been outspoken in its opposition to predatory lending practices that adversely impact service members and their families, and successfully lobbied for protections to be included in the FY 2007 Defense Authorization law.
Payday loans are typically marketed as a way to get quick cash when you need it. They generally have three features: the loans are for small dollar amounts; borrowers must repay the loans quickly; and the loans require that a borrower give lenders access to repayment through a claim on the borrower’s deposit account.
Shipmates are urged to let CFPB know about any abuses they have recently experienced with predatory lenders. Click here to relay information to CFPB about loan abuses.