Nevada Attorney General Aaron Ford is pressuring the Consumer Finance Protection Bureau to enforce a rule that would protect borrowers from abusive lending.
In 2017, the CFPB announced a new rule that would protect borrowers and ensure they would have the ability to repay loans, while also prohibiting lenders from using abusive tactics for repayment, the Attorney General’s office said in a statement.
The rule went into effect in 2018 and was meant to protect borrowers and stop lenders from using abusive tactics to get people to repay their loans, but compliance was delayed until Aug. 19 of this year. The protection bureau has proposed to delay compliance until Nov. 19 — three years after the regulation was finalized — and is now looking into another rule that would rescind this ruling entirely, according to a statement from the Nevada attorney general’s office.
According to a statement from Ford’s office Tuesday, the short-term payday and title lending model is broken.
“Many loans (are) expected to fail,” the statement said. “(Ninety) percent of all loan fees are from consumers who borrow at least seven times in one year.”
The attorneys general from California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Iowa, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and Wisconsin are also filing these comments.
Contact Bailey Schulz at firstname.lastname@example.org or 702-383-0233. Follow @bailey_schulz on Twitter.