Merkley Statement on CFPB Payday Rules: “It’s Well Past Time to Break” the Endless Cycle of Payday Debt

WASHINGTON — Oregon’s Senator Jeff Merkley, the top Democrat on the Senate Consumer Protection and Financial Institutions Subcommittee, issued the following statement after the Consumer Financial Protection Bureau released new details about planned payday lending rules:

“Payday lending is an abusive industry that traps working families in an endless cycle of debt, and it’s well past time to break that cycle. The notion that lenders should have to take into consideration a borrower’s ability to repay a loan is just common sense. I strongly urge the CFPB to resist the coming efforts to weaken these badly-needed rules. In fact, they should instead strengthen this proposal by absolutely ensuring it is free of loopholes that would allow these predatory loans to keep trapping American families in a vortex of debt.”

Last week, Merkley wrote to CFPB Director Richard Cordray and wrote an op-ed in the Oregonian urging the CFPB to take action on payday lending.