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CFPB Eliminates Consumer Protections from Payday and Automobile Title Loans During COVID-19 Pandemic

CFPB Eliminates Consumer Protections from Payday and Automobile Title Loans During COVID-19 Pandemic

Yesterday, the customer Financial Protection Bureau (CFPB) eliminated customer defenses against predatory payday and automobile name loan providers, making Georgia families confronted with the harms of vehicle name financing. While Georgia’s usury limit provides protections through the cash advance debt trap, abusive automobile title lending nevertheless plagues Georgia. Presently, hawaii will not view this kind of predatory lending as a loan that is small-dollar but alternatively permits vehicle games to be “pawned” with interest rates because high as 300 %.

“This may be the worst feasible time for you expose Georgia customers to predatory loan providers. The crisis that is economic through the COVID-19 pandemic simply leaves numerous families struggling to have by,” said Liz Coyle, executive manager of Georgia Watch. “To protect Georgians with this time that is financially unstable the legislature should implement a 36% limit on all small-dollar loans, including vehicle name and installment loans.