CFPB Eliminates Consumer Protections from Payday and Automobile Title Loans During COVID-19 Pandemic

CFPB Eliminates Consumer Protections from Payday and Automobile Title Loans During COVID-19 Pandemic

Important Georgia Usury Cap must be Expanded to guard Consumers through the financial obligation Trap

Yesterday, the buyer Financial Protection Bureau (CFPB) eliminated customer defenses against predatory payday and automobile name loan providers, making Georgia families confronted with the harms of vehicle name financing. While Georgia’s usury limit provides defenses through the pay day loan debt trap, abusive automobile title lending nevertheless plagues Georgia. Presently, hawaii will not regard this types of predatory lending being a small-dollar loan, but instead enables vehicle games to be “pawned” with interest rates up to 300 %.

“This could be the worst time that is possible expose Georgia customers to predatory lenders. The overall economy stemming through the COVID-19 pandemic simply leaves numerous families struggling to obtain by,” said Liz Coyle, executive manager of Georgia Watch.

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