Analysis of Payday Complaints Reveals Requirement For More Powerful Federal Protections

Customer complaints about pay day loans towards the Customer Financial Protection Bureau (CFPB) reveal a need that is critical strengthening the agency’s proposed guideline to rein in pay day loans as well as other high-cost financing, based on a study released today by the CoPIRG Foundation.

“Our analysis of written complaints towards the CFPB discovered significant proof of the problem that is major pay day loans: borrowers can’t manage these loans and wind up caught in a period of financial obligation. Ninety-one per cent (91%) of written complaints had been pertaining to unaffordability,” said Danny Katz, Director for the CoPIRG Foundation.

COP CFPB Payday Report

  • Ninety-one % (91%) of all of the written explanations revealed indications of unaffordability, including abusive commercial collection agency methods, banking account closures, long-lasting rounds of financial obligation, and bank charges like overdraft charges as a result of collection efforts.
  • The database reveals difficulties with the https://www.approved-cash.com/ full spectrum of predatory products, including storefronts and online loan providers, short-term payday, long-lasting payday installment loans, and automobile name loans.
  • Over fifty percent (51%) regarding the payday complaints were submitted about simply 15 organizations. The remaining of complaints had been spread across 626 organizations. Continue reading