Durbin Engages Community Banks, Credit Unions in Effort to Protect Consumers from Predatory Payday Lending

Statement

In response to growing demand for small dollar loans, U.S. Senator Dick Durbin (D-IL) wrote to the Community Bankers Association of Illinois, the Illinois Credit Union League, and the Illinois League of Financial Institutions to engage community banks and credit unions in developing alternative credit options for the twelve million Americans who fall victim to predatory payday loans every year.

"I would appreciate any suggestions you may have as to how we can work together to create a small dollar lending environment beneficial to borrowers, financial institutions, and the economy," Durbin wrote. "I also encourage you to highlight the challenges that prevent your members from offering safe and affordable small-dollar loans. Consumers deserve better than predatory businesses that make extraordinary profits by trapping them in a debt spiral that leaves them financially worse off."

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