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art by Favianna Rodriguez

Art by Favianna Rodriguez

“ Washing one’s hands of the conflict between the powerful and the powerless means to side with the powerful, not to be neutral. ” – Paulo Freire, Educator

Stop Payday Predators

Here's the message we sent to our members. After you've read it, please add your voice.

Dear Friend,

Today, October 7th, we can change the exploitive practices of the payday lending by demanding stronger laws against payday lenders. Payday lending is the private industry that profits off the poor. And we need thousands of people to submit a comment to the Consumer Finance Protection Bureau (CFPB) refusing a rule with any loopholes on ability to repay.

Will you submit a comment to the CFPB to stop payday lending?

The CFPB has said that these comments are critical in determining how much it strengthens or loosens payday lending rules and protects consumers. Today is the last day to submit comments. We must submit by 5pm PST.

Let's show payday payday lenders we will not sit idly by while our communities suffer. Submit a comment now.

Read our email below for more details.

Thank you for all you do and ¡adelante!

– Matt, Favianna, Oscar, Erick, and the Presente.org team.


UNACCEPTABLE: The payday loan industry profits from our people not being able to pay for rent, food, and utilities.

Protect Latinx consumers today and tell the CFPB to keep the sharks away.

Dear Friend,

Rolon visited Payday Cash Advance Store in Lorain, Ohio, and took out $3000 to make much-needed repairs to her home. A year later, due to the outrageous fees and interest rates, Rolon still wasn’t able to pay back the loan. And because Rolon had used her car as collateral, she lost her car, racked up enormous fees at a rate of $45 per day, and was forced to choose between paying bills or the payday lender. Rolon says “The truth is, it was terrible. You go there with the intent to get out of a bind, but instead it’s worse. The payments were too high.”1

Payday lender sharks tear apart everyday people, like Rolon. But we can change this. The Consumer Finance Protection Bureau (CFPB) recognizing the crisis has proposed rules to keep payday lenders from taking advantage of people in need, but the current proposal has too many loopholes which the payday industry can, and will, exploit.

Tell the CFPB to close the loopholes to keep payday lender sharks at bay.

Payday lending is a 1.5 billion industry that profits off people being unable to pay rent, for food, and for utilities.2 Payday lending is the lending of short term loans with an annual percentage rate (APRs) between 360-459% to lower income folks.3 The business of payday lending rests on people being unable to pay their loans and becoming repeat borrowers, leading to a long-term debt-trap.4 The Latinx community is specifically vulnerable to payday loans. In California, only 25% of payday eligible adults are Latinx, but Latinx adults make up 37% of all payday borrowers.5 In fact, in California, annually payday loans strip Latinx and Black communities of $247 million.6

Protect Latinx consumers today and tell the CFPB to keep the sharks away.

Today, we’ve got a chance to build a lifeboat to keep our families out of harm’s way with new proposed rules from the Consumer Financial Protection Bureau.7 The only problem is that the boat is full of holes, and a leaky boat won’t keep the loan sharks at bay. The rules do not require that lenders check, across the board, that every borrower has the ability to repay loans, setting borrowers up to stay in debt forever.8

Demand the CFPB plug the leaks in their proposed rule.

The business model of payday and car title loan sharks keeps people trapped in endless cycles of debt. These sharks rely on direct access to borrowers’ checking accounts and holding the title to your car to get paid first. There are many hidden costs to payday loans, including having your car repossessed on loans greater than $2500 by car title lenders,9 overdrawn bank fees,10 and political manipulation through financing politician campaigns.11 This is the definition of predatory. The CFPB rules must truly dismantle the debt trap by letting payday lenders make a loan only when they have made sure the borrower can afford to pay it back.  

Right now the CFPB proposed rules don’t guarantee that borrowers have the ability to repay loans.

The CFPB needs to hear from you. The CFPB takes our comments seriously and our goal is to give them over 200,000 comments of real stories and the effect of payday loans on your life, our community, and our nation. Through these comments we can protect the Latinx community.

Tell the CFPB to plug the holes in their proposed rule so our communities are safe from predatory payday loan sharks who put profits over people.

Thank you for all you do and ¡adelante!

– Matt, Favianna, Oscar, Erick, and the Presente.org team.

P.S. Can you donate $5 to support our work? We rely on contributions from people like you to see campaigns like this through.

Sources:
1. "Truth in Payday Lending: Stories from Latino Borrowers." National Council of La Raza. April 15, 2016.
2. "Profiting from Poverty." National People’s Action. January 2012. 
3. "Predatory Payday and Larger Installment Loans, Overshadow Emerging Markets for Smaller, Less Expensive Installment Loans in California." Center For Responsible Lending. December 14, 2015.
4. Ibid.
5.  Predatory Profiling. The Role of Race and Ethnicity in the Location of Payday Lenders in CaliforniaCenter for Responsible Lending. March 26, 2009.
6. Ibid.
7. "Consumer Finance Protection Bureau Proposes to End Payday Debt Traps." Consumer Finance Protection Bureau. June 2, 2016. 
8. "The CFPB’s Payday Lending Proposed Rule: What Works, What Doesn’t." Center for Responsible Lending. June 2016.
9. "House panel questions legitimacy of CFPB arbitration rule." The Hill. May 18, 2016. 
10. Ibid.
11. "Payday Pay to Play." Americans For Financial Reform. June 2015.