On Thursday, Hillary Clinton released a statement supporting a new rule proposed by the Consumer Financial Protection Bureau (CFPB) regulating payday lenders. The rule would change the way payday lenders assess the borrower’s ability to repay the loan, and would make it more difficult for lenders to roll over loans, a practice that typically leads to additional fees. The CFPB’s rules would also prevent lenders from automatically withdrawing fees from borrower’s bank accounts. Clinton supports the rule saying that it will help protect families from high interest rates and outrageous fees. A copy of Clinton’s statement is below:
“Abusive payday lenders have for too long been a drain on the resources of families in need, charging outrageous fees and interest rates, trapping families in never-ending cycles of debt, and subjecting them to brutal debt collection practices. Today, the Consumer Financial Protection Bureau — a government watchdog dedicated solely to protecting working Americans from unfair and deceptive financial practices — is putting forward an important proposal to crack down on abusive payday lending, and I stand with them in that effort.
This is an important point of contrast in this campaign. Donald Trump wants to strip the U.S. government’s power to apply rules to payday lenders, abolish this critical consumer watchdog, and roll back the other Wall Street reforms that we put in place after the financial crisis. Working families deserve a president who will look out for them — not payday lenders and special interests on Wall Street.”
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News Source: The Wall Street Journal