AG HERRING CONTINUES TO OPPOSE TRUMP MANAGEMENT ROLLBACK OF COMMONSENSE DEFENSES FOR PAY DAY LOAN BORROWERS

Coalition of attorneys general opposes move to rescind CFPB guideline built to protect customers from dangerous financial obligation traps

RICHMOND (might 16, 2019) – Attorney General Mark R. Herring today joined up with a coalition of 25 attorneys general opposing the Trump management’s efforts to get rid of guidelines protecting customers from abusive payday and car name loans. The states filed a formal remark page using the customer Financial Protection Bureau (CFPB) opposing its proposed repeal of guidelines used in 2017 to safeguard customers from extortionate rates of interest as well as other predatory techniques that trap consumers in rounds of financial obligation, while preserving use of less-risky forms of short-term credit. The page contends that eliminating the 2017 defenses, that have been set to get into impact in August 2019, would damage customers, reduce states’ capability to protect their residents from predatory financing, and it is inconsistent utilizing the CFPB’s appropriate responsibilities to guard consumers from unjust and abusive techniques.

“Small-dollar loans like payday or car name loans can trap low-income Virginians in an apparently cycle that is never ending of,” stated Attorney General Herring . “Under the Trump management, the CFPB has proceeded to shirk their duty of protecting customers and only protecting lenders that are predatory. Read more