Payday – and other high cost loans – offer financial relief but create a debt trap for many households. According to the Consumer Financial Protection Bureau, the typical individual who takes out a payday loan ends up taking out 10 loans over the course of a year – a result of these loans’ high rates of interest and lack of any safeguards against recurring debt.
We believe that individuals – particularly those who are poor or struggling – should not become easy marks for predatory lenders. Instead, lending should be fair. Loans should provide an avenue for financial opportunity, not a quagmire of debt.
Join us. We call for an end to the exploitation of households through high cost loans. These loans should be capped at 36% or lower, or reformed so that individuals are not trapped by debts they cannot pay.