“Caught in a trap”: Virginians describe payday loans to their experiences, urging feds to manage

Experiencing misled, scammed and eventually threatened by high-interest price payday and automobile title loan providers, Virginians are pleading with federal regulators never to rescind a proposed groundbreaking guideline to rein in abuse.

Tales from almost 100, mounted on a Virginia Poverty Law Center page asking the customer Finance Protection Bureau to not ever gut the guideline, stated these triple-digit interest loans leave them stuck in a type of debt trap.

VPLC Director Jay Speer said the guideline that the CFPB is thinking about overturning — requiring lenders to check out a borrower’s ability that is actual repay your debt — would stop a number of the abuses.

“Making loans that a debtor cannot afford to settle may be the hallmark of financing shark and never a lender that is legitimate” Speer composed in their page towards the CFPB.

The proposed guideline ended up being drafted under President Barack Obama’s management. Under President Donald Trump, the agency has reversed program, saying the rollback would encourage competition into the lending industry and provide borrowers more use of credit. Continue reading “Caught in a trap”: Virginians describe payday loans to their experiences, urging feds to manage