June 2, 2016
DECATUR, Ga. — Stephen K. Reeves, who leads the advocacy efforts for the Cooperative Baptist Fellowship, commented on the long-awaited proposal from the Consumer Financial Protection Bureau to reign in the payday and auto-title loan industry. The CFPB’s proposal announced today forces lenders to determine if some borrowers can afford to take out loans and also calls for restrictions on rollovers on these short-term loans which can carry interest rates exceeding 400 percent.
“This is the most important moment in the fight for just and fair lending,” Reeves said. “The proposed rule released today will go a long way to insuring that those who offer small loans are not basing their profits on a cycle of debt they intentionally create.
“I am thankful to the Consumer Financial Protection Bureau for its diligence and willingness to engage with faith communities who are on the front lines helping their neighbors. I am also thankful for the many pastors and countless church members in the Cooperative Baptist Fellowship who have been working tirelessly for years as champions for these desperately needed reforms.”
In the coming months, the CFPB will receive and evaluate comments due Sept. 14 based on their proposal before issuing final regulations. The CFPB is also starting a formal review of other high-risk loan products and practices such as open-end credit.
“The public comment period is an extremely important opportunity for Cooperative Baptists and all people of faith to raise our collective voices to counter the well-funded payday industry megaphone and demand that strong rules are finalized as well as enforced,” Reeves said.
CBF is a Christian Network that helps people put their faith to practice through ministry efforts, global missions and a broad community of support.The Fellowship’s mission is to serve Christians and churches as they discover and fulfill their God-given mission.