Bonamici Condemns Consumer Bureau for Relaxing Regulations on Predatory Payday Lenders

Press Release

Congresswoman Suzanne Bonamici (D-OR) issued the following statement in response to the Consumer Financial Protection Bureau's announcement that they will reconsider their payday lending rule and remove or relax protections that stop predatory payday lenders from cheating consumers:

"Consumer protections against unscrupulous payday lenders will stop the worst abuses in an industry that traps consumers in a cycle of debt that is next to impossible to escape," said Bonamici. "In times of financial crisis, many people turn to payday lenders. But too often, taking out a payday loan leads to an insurmountable cycle of debt that becomes impossible to repay.

"Under President Obama, the CFPB took strong action to require payday lenders to determine whether borrowers have the ability to repay loans within thirty days, so that they are not trapped in that insurmountable debt cycle. I am disappointed--though not surprised--that the Trump Administration is moving to undermine these critical consumer protections."

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