Ohio Democratic U.S. Sen. Sherrod Brown applauded efforts to try to stop high-interest payday lenders from grifting American citizens in desperate need of cash with new rules from the U.S. Consumer Financial Protection Bureau.
In a press release Thursday, Brown – the ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – praised the Consumer Financial Protection Bureau’s (CFPB) rule to rein in predatory payday loans that often keep low-income borrowers trapped in a cycle of debt.
According to research at the Pew Charitable Trusts, Ohio has the highest payday loan prices in the nation, despite the votes of the General Assembly and almost two-thirds of Ohioans to cap payday loan rates, Brown’s release said.
“The Consumer Financial Protection Bureau’s rule will crack down on shady payday lenders that saddle borrowers with triple-digit interest rates and cost Ohioans over $500 million year in fees alone,” Brown said. “Payday lenders have exploited loophole after loophole to trap working people in debt, and this rule will help put an end to their abusive practices.”
The CFPB has spent several years studying the effects of payday lending practices on consumers and working with consumer advocates, banks, credit unions and lenders to identify abuses, the release added. The CFPB’s rule will ensure that borrowers have the ability to repay payday loans without being trapped in a cycle of high fees and triple-digit interest rates, it said.