WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), a longtime champion of legislation to rein in the predatory payday lending industry, today presented testimony into the home Financial solutions Subcommittee on customer Protection and finance institutions hearing on ending financial obligation traps when you look at the payday and dollar credit industry that is small. The subcommittee will discuss the Protecting customers from Unreasonable Credit Rates Act of 2019, a bill Durbin reintroduced yesterday that could eradicate the extortionate rates and high charges charged to customers for payday advances by capping rates of interest on customer loans at a percentage that is annual (APR) of 36 percent—the same limitation currently in position for loans marketed to army new jersey payday advance loans solution – members and their own families.
Chairwoman Waters, Subcommittee Chairman Meeks, people in the subcommittee:
Many thanks for enabling me personally to submit testimony on this consumer protection issue that is important. We realize that almost 12 million cash-strapped Americans are charged interest levels surpassing 300 percent for pay day loans, and therefore the lending that is payday gathers about $8 billion in charges each year because of this.
But there’s two figures that actually tell the tale concerning the payday financing industry in my situation: “75 %” and “10”—75% of most costs gathered because of the pay day loan industry are produced from borrowers who’ve been obligated to restore their loans a lot more than 10 times in a provided 12 months simply because they lacked the capability to repay the entire loan. Continue reading “Senator Dick Durbin. Comprehensive text of Durbin’s prepared testimony is available below:”