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CONTACT:Mike Litt, U.S. PIRG Education Fund Office: (202) 461-3830 Cell: (702) 427-1608mlitt@pirg.org

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 agency’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.

“Our analysis of written complaints into the CFPB discovered significant proof the significant problem with pay day loans:

borrowers can’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,” 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