Arizona, D.C.—Today, the individual economical cover agency (CFPB) won your first move toward end your debt hold by finalizing brand-new market protections for shorter-term money in which customers must payback all or a good many debt at one time contains payday and vehicle concept financing, and longer-term financial products with inflate transaction.
Your Debt Hold Harms Customers
Payday money, which often carry an annual interest rate of over 300%, are unaffordable and ultimately trap consumers in a cycle of debt where consumers roll over loans because they are unable to repay them. Lenders make money even if the loan is never successfully paid back because of high interest rates and fees—the debt trap. Financially vulnerable communities and communities of color are particularly harmed. Almost 70% of borrowers take out a second loan within a month, and one in five borrowers take out 10 loans or more consecutively. (more…)