Short-Term Credit Consumers Detail Problems With Proposed CFPB Rule

January 12, 2017 | Consumer Credit Wire

As we enter a New Year, the CFPB continues to deliberate its deeply flawed proposed rule to regulate short-term lending that will deny millions of Americans access to credit. Last fall, more than one million of these consumers spoke out against the rule during the public comment period and recounted their personal stories about short-term credit helping them.

Will the Bureau listen to customers and others that will be affected by this harmful rule?

• “I am a retired teacher living on fixed income with lots of health related expenses… Quite often I must choose between purchase of food and essential items needed. The possibility of losing short-term loans is extremely frightening. Please reconsider!” – Carolyn H., Clearwater, FL
• “By taking this away you are affecting whether my son and I survive. You have no idea what I go through each month. Why don’t you pull up a chair in the payday loan office and watch and listen to the people who are there for money? They are real everyday middle class people trying to get through another month taking care of their families. How do you know what is best without talking to us? Ask the consumer.” – Diane J., Coralville, IA
• “I am a single parent who has an illness known as Lupus. Due to my disability there are times I need days [off] work… this short-term credit line helps me when [I’m] in desperate need.” – Laura O., Ontario, CA
• “I wasn’t getting paid when I was off sick. If they hadn’t given me a loan I wouldn’t have been able to get my prescriptions… if I had not received the loan so that I could get my prescriptions I very likely wouldn’t be writing you today.” – Janna T., Rockwall, TX

The sheer number of Americans who voiced concern for this proposed rule should give the CFPB pause and make the agency reconsider its approach to regulating short-term credit.

Stay tuned as we keep the CFPB accountable to all those who commented on the short-term lending rule at www.CFPBCommentWatch.com.