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Customer Federation of America calls For New Protections To Safeguard Borrowers’ Bank Accounts Included In Forthcoming Rule On Pay Day Loans
Washington D.C.—Today, the buyer Financial Protection Bureau (CFPB) circulated a report that is new the damage caused whenever payday loan providers utilize immediate access to a borrowers’ bank-account to gather payments-including regular, high overdraft costs and even account closing. Whilst the report makes use of information linked to pay day loan deals carried out online, the findings recommend the necessity for strong protections for several pay day loans.
Like pay day loans produced by storefront lenders, online pay day loans carry high interest levels, pull re re payments straight from a bank that is consumer’s and therefore are created using small consideration of a borrower’s capability to repay.
“These findings reinforce exactly exactly just what customer, civil legal rights and faith companies in the united states have stated again and again,” said Tom Feltner, Director of Financial Services at customer Federation of America. Continue reading