Senator Patty Murray is calling for stronger rules on payday loans, vehicle title loans and other high-cost loan products. Sen. Murray sent a letter to the Consumer Financial Protection Bureau asking that it consider rules more in line with Washington state. Washington updated its laws in 2010 which prompted a steady decline in the cost and number of payday loans and saved borrowers $500 million each year. In her letter to the CFPB, Murray said:
“Payday lending regulation must ensure that loans are affordable in light of a borrower’s income and expenses, and I am encouraged to see that the CFPB’s proposed rules include provisions similar to those in Washington state. As you seek comment from industry and other stakeholders, I urge you to maintain the strong consumer protections outlined in your proposed rule, and at a minimum I hope to see a final rule that requires an ability-to-pay provision in the underwriting of loans.”
Click here to read Senator Murray’s complete letter to the Consumer Financial Protection Bureau.