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 buyer Financial Protection Bureau (CFPB) eliminated customer defenses against predatory payday and automobile name loan providers, leaving Georgia families confronted with the harms of car title financing. While Georgia’s usury limit provides defenses through the cash advance debt trap, abusive automobile title lending nevertheless plagues Georgia. Presently, their state doesn’t view this form of predatory lending as a loan that is small-dollar but instead allows vehicle games to be “pawned” with interest rates up to 300 {6dd60fa502fc498728612f02b1d1a2beab99874f271b73d46d1d92b3b6fbeaa6}.

“This could be the worst time that is possible 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 economically unstable time, the legislature should implement a 36{6dd60fa502fc498728612f02b1d1a2beab99874f271b73d46d1d92b3b6fbeaa6} limit on all small-dollar loans, including automobile name and installment loans.

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