News Release. Report: Review of Payday Complaints Reveals Requirement For More Powerful Federal Protections
CONTACT:Mike Litt, U.S. PIRG Education Fund Office: (202) 461-3830 Cell: (702) email@example.com
Report: Review of Payday Complaints Reveals Requirement For More Powerful Federal Protections
Washington, D.C. – Consumer complaints about pay day loans towards the customer Financial Protection Bureau (CFPB) reveal a need that is critical strengthening the agencyвЂ™s proposed guideline to rein in pay day loans along with other high-cost financing, relating to a study released today by the U.S. PIRG Education Fund.
вЂњOur analysis of written complaints into the CFPB discovered significant proof the significant problem with pay day loans:
borrowers canвЂ™t pay for these loans and find yourself caught in a period of financial obligation. Ninety-one(91 that is percent) of written complaints had been pertaining to unaffordability,вЂќ said Mike Litt, Consumer Advocate with all the U.S. PIRG Education Fund.
Some key findings:
- Ninety-one(91 that is percent) of all of the written explanations revealed indications of unaffordability, including abusive commercial collection agency methods, banking account closures, long-lasting rounds of financial obligation, and bank charges like overdraft costs as a result of collection efforts.
- The database reveals difficulties with the full spectrum of predatory services and products, including storefronts and online loan providers, short-term payday, long-lasting payday installment loans, and car name loans.
- More than half (51%) regarding the payday complaints were submitted about just 15 organizations. Read more