Advocates bite back at payday lenders for “Shark Week” action

Editor’s note: The CFPB, a federal agency, has proposed new rules for payday, car title, and high-cost installment lenders.

BUT, they need to hear from consumers- that means you! We have an easy-to-use page where you can weigh in- it only takes a minute and will help bring about important consumer protections with these loans. Please share a line or two in the comments box about why you care about this issue and want to see strong federal reforms.

PS: You do NOT have to be a payday, car title, or installment borrower to sign the petition.

 

Payday Loan Shark Attack!

Payday Loan Shark Attack!

Consumers, youth leaders and advocates staged a demonstration at a Check ‘N Go storefront in downtown San Francisco today to raise awareness about a unique breed of sharks – financial predators offering payday loans – as part of the Discovery Channel’s “Shark Week.”

Check out the coverage on Univision: Evite préstamos imposibles de pagar, ¿cómo evitar los préstamos del día de pago?

And on CBS San Francisco: Rally In San Francisco Calls Attention To Predatory Payday Lenders

During Conference

The CFPB will begin writing payday loan rules in early 2015, and advocates are urging the federal Consumer Financial Protection Bureau (CFPB) to implement strong consumer protection rules to end the payday loan debt trap. Research indicates most payday loan consumers end up in long-term debt after taking out their first payday loan, typically using 10 payday loans a year. Consumers who have struggled with payday loan debt or who have been harassed by payday loan collectors are encouraged to file complaints and share their stories with the CFPB via their website: www.consumerfinance.gov.

Group Picture Final

Community groups have been campaigning for local and statewide reforms for over a decade, resulting in numerous California cities adopting restrictive land use measures to restrict the growth of payday loan stores. Despite local leaders taking action, the California state legislature has failed to enact any consumer protections.

CRC payday organizer Liana Molina

Liana Molina from CRC

“Our state Senate and Assembly have repeatedly rejected payday loan reform proposals that would rein in payday loan abuses,” explains Liana Molina, an organizer with the California Reinvestment Coalition. “People think these loans will help them stretch their paychecks.  Instead, they find themselves in an endless cycle of renewing their original loans and paying hundreds of dollars in fees as a result.”

Michael Hampton

Michael Hampton, leader of Community Housing Partnership’s Community Organizing Resident Engagement program

“We’re calling on the payday loan industry to end their attacks against working people, and for the CFPB to do what our state has failed to do: end the debt trap,” says Michael Hampton, a leader of Community Housing Partnership’s Community Organizing Resident Engagement program.

Graciela Aponte

Graciela Aponte with the Center for Responsible Lending, California

Graciela Aponte of the Center for Responsible Lending and Fernando Aguilar of the Youth Leadership Institute also spoke to the crowd about the issue and what communities can do to fight back against the payday loan industry.

Fernando

Fernando Aguilar of the Youth Leadership Institute

CRC was proud to work with Community Housing Partnership’s Community Organizing Resident Engagement (CORE) tenant leaders, Youth Leadership Institute (YLI) and Mission SF Community Financial Center youth leaders, the Tenderloin Housing Clinic, the Housing Rights Committee of SF and the Center for Responsible Lending California to organize this action. Similar events are taking place across the country this week, coordinated by National People’s Action.

Payday loan shark attack

William “Bill” Gandy

Are you angry about payday loans and the financial damage they cause?  Sign our petition to the Consumer Financial Protection Bureau: Tell the CFPB: Payday Loans Must Include Consumer Protections

Also, check out John Oliver and Sarah Silverman’s take on payday loans: John Oliver Last Night.  (Some adult language)

Pressed for time?  Check out Consumerist, where they pulled out the five best lines from this episode: The Best Lines From John Oliver’s Takedown Of The Payday Loan Industry

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