Senate Introduces CRA Resolution to Overturn the CFPB's Federal Payday Rule
Late last year, a bipartisan group of lawmakers introduced a joint resolution under the Congressional Review Act to override the Consumer Financial Protection Bureau’s (CFPB) federal payday rule. Since its introduction, Rep. Hollingsworth [IN-09], Rep. Banks [IN-03], and Rep. Messer [IN-06] have co-sponsored the bill.
Just last week, Senator Lindsey Graham (R-SC) introduced a bill in the Senate that would, likewise, nullify protections for payday loan borrowers by repealing the rule. The rule requires payday and car title lenders to assess a borrower’s ability to repay before issuing a loan or issue a limited number of loans without assessing a borrower’s ability to repay. This is a common sense measure that is designed to protect people from being trapped in the high-cost loans that characterize the payday and car title industries.
The rule, which was finalized last year and is set to go into effect in August of 2019, already appears to be in jeopardy in the hands of CFPB Acting Director Mick Mulvaney, who announced that the Bureau would reconsider the protections.
Polling data shows that 78% of Hoosiers support an ability to repay requirement and earlier this year, at the request of advocates, the Indiana Senate rejected a measure to expand payday lending in Indiana. Congress has until early May to overturn the Payday Rule.
There are a number of ways you can support common sense payday loan reform, including:
- Calling Senators Donnelly (202-224-4814) and Young (202-224-5623) to remind them that 78% of Hoosiers support an ability to repay requirement and that Hoosiers can't afford high-cost debt traps (if borrowers can afford to repay loans, then, lenders have no reason to oppose the Payday Rule);
- Joining the Network Thurs., Apr 19 6:30-8:00 PM for a film screening and panel discussion on payday lending and local reform strategies; and
- Adding your name or organization to the Network’s Payday Rule Sign On Letter.