Bonamici Condemns Consumer Bureau for Relaxing Regulations on Predatory Payday Lenders

WASHINGTON, DC [01/17/18] – 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."

In 2016, Bonamici introduced the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act to protect consumers from predatory lending practices and crack down on some of the worst abuses in the industry. This legislation builds on successful efforts she led in the Oregon Legislature to cap interest rates on payday loans and stop the worst abuses in the payday loan industry in Oregon.