(Washington, D.C.) – Today, U.S. Senator Patty Murray (D-WA) released the following statement after the Consumer Financial Protection Bureau (CFPB) released a long-awaited proposed rule on payday and small-dollar lending. The rule is designed to end payday debt traps that saddle borrowers with loans they can’t afford and sink them into long-term cycles of debt.
“This rule is a good step to help ensure our nation’s most vulnerable workers and families aren’t being targeted by predatory high-interest payday loans that send them spiraling into debt. It is long past time that short-term lenders align their products with the wellbeing of their customers,” said Senator Murray. “I look forward to this rule being finalized to help hard-working Americans keep more money in their pockets and move us one step closer to an economy that works for all families, not just the wealthiest few.”
The new rule focuses on stronger ability-to-repay and income verification evaluations, as well as efforts to rein in aggressive automatic account withdrawals that can result in excessive fees and even bank account closures. Senator Murray is a cosponsor of the SAFE Lending Act, which aims to end abuses in the online payday lending industry. Last year, Senator Murray sent a letter to the Consumer Financial Protection Bureau along with 33 other senators asking for robust rules on payday and small-dollar lending.