DECATUR, Ga. — Stephen K. Reeves, associate coordinator of partnerships and advocacy for the Cooperative Baptist Fellowship, released the following statement following news that the Consumer Financial Protection Bureau’s rule providing protections to millions of American consumers from the predatory practices of payday lenders has survived an attempted repeal in Congress.
Today is a momentous day worth celebrating. Congress has declined to overturn the Consumer Financial Protection Bureau’s payday rule through the Congressional Review Act process. Few politicians want to stand up in the light of day and so clearly vote to defend payday lenders.
The rule, as put forward by the CFPB, is a modest, common-sense measure that requires lenders to assess a borrower’s ability to repay. This critical assessment helps insure that short-term loans don’t turn into long-term debt traps for borrowers. The vigorous attack on the rule from the payday industry shows where their profits lie—in the intentional creation of debt-traps.
CBF advocates were part of the thousands of voices advocating for a strong payday lending rule from the CFPB. I am disappointed that, under new leadership, the CFPB is likely to reopen this process. Given recent actions by the Bureau, I’m afraid the intent is to weaken the rule already finalized before it can ever take effect. The payday lending industry is most influential behind closed doors where the public cannot see and where campaign contributions and high-powered lobbyists have more sway. I fear a new rulemaking process might give them this opportunity.
With this recent development, as well as new state laws introduced to help lenders avoid the CFPB rule, our advocacy efforts are not complete. CBF Advocacy will continue to encourage and equip advocates to stand alongside our financially vulnerable neighbors to insure they’re not preyed upon for profit.
The CFPB’s payday lending rule, which was finalized in October 2017, will cap the number of loans that lenders make to a borrower and also require lenders to determine the borrower’s ability to repay the loan. Read CBF Advocacy’s analysis of the rule here.
Learn more about CBF Advocacy at www.cbf.net/advocacy.
The Cooperative Baptist Fellowship 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. Learn more at http://www.cbf.net.