CFPB Field Hearing on Payday Lending Made Remarks of Michael D. Calhoun

CRL president Mike Calhoun delivered the after testimony at the customer Financial Protection Bureau field hearing on payday advances in Richmond

Starting Remarks

Many thanks when it comes to chance to engage on today’s panel. This is certainly a hearing that is critical the scores of working families who’re snared when you look at the financial obligation trap of unaffordable loans.

The real history regarding the legislation of payday lending takes us towards the states. Payday advances were legalized just in reasonably years that are recent only in a few states, because of payday loan providers’ pressing for the exclusion to a state’s rate of interest restriction. The payday financing industry promoted the mortgage’s 300- or 400per cent yearly interest, along side immediate access to borrowers’ checking records or car name, regarding the premise that the mortgage ended up being for an urgent situation, once-in-a-blue-moon situation, and had been only a two-week or one-month loan. Plus »