Information Launch Report: Research of Payday Complaints Reveals Requirement For More Powerful Federal Protections
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 report released today because of the U.S. PIRG Education Fund.
“Our analysis of written complaints towards the CFPB found significant proof the significant problem with pay day loans: borrowers can’t pay for these loans and become caught in a period of financial obligation. Ninety-one(91 that is percent) of written complaints had been associated with unaffordability,” said Mike Litt, Consumer Advocate because of the U.S. PIRG Education Fund.
Some key findings:
- Ninety-one(91 that is percent) of most written explanations revealed indications of unaffordability, including abusive commercial collection agency techniques, banking account closures, long-lasting rounds of financial obligation, and bank charges like overdraft costs as a result of collection efforts.