Repeal of Borrower Protections Hurts Consumers in a Fragile Economy

Statement of Bartlett Naylor, Financial Policy Advocate, Public Citizen

Note: The U.S. Consumer Financial Protection Bureau (CFPB) today announced a significant, partial repeal of a 2017 rule that would have protected borrowers from falling into cycles of debt by limiting companies from lending money to those unable to repay payday or auto title loans. The CFPB itself found that without the 2017 rule’s protections, 80% of payday loans are taken out within two weeks of repayment of a previous payday loan.

Who is Kathy Kraninger really working for? With an increasing number of Americans thrown into precarious financial straits by the COVID-19 pandemic, President Donald Trump’s CFPB is showing where its allegiances lie: with predatory lenders, not struggling consumers.