Protect Poor Citizens From Predatory Lending

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Target: Chair of the Democratic National Committee Debbie Wasserman Schultz

Goal: Stop supporting predatory lending by payday loan companies that traps poor people in a cycle of debt.

Policies intended to protect people from predatory lenders could be weakened due to plans supported by Democratic National Committee Chair Debbie Wasserman Schultz, who has joined with the Republicans in plans to stop the regulation payday lenders. According to nonprofit research organization Allied Progress, Congresswoman Schultz joined Republicans in opposition to plans to regulate payday lenders after she received $68,000 in campaign contributions from payday lenders.

The new rules proposed by the Consumer Finance Protection Bureau would shield families from predatory lending in an attempt to prevent people from getting trapped in cycles of debt. This kind of protection is very much needed as an increasing number of Americans become trapped in cycles of debt related to payday loans. In Congresswoman Schultz’s home state of Florida, it’s estimated that 76 percent of payday loans were taken out by people in order to pay off previous payday loans, and according to PEW these loans have an average interest rate of 304 percent.

The Republican counter-proposal backed by Congresswoman Schultz would delay the further regulation of payday loan companies by two years and exempt any state which has laws regarding payday lenders on the books.  This would not only exempt Florida, which has laws regarding payday lending which clearly do not work, but would also allow other states time to legislate in order to avoid regulation. Sign our petition to help stop predatory lending.

PETITION LETTER:

Dear Rep. Schultz,

While it can sometimes help people to have access to loans, payday lenders do not help people. Instead they find desperate people and take advantage of them. In your home state, over three quarters of payday loans have been taken out to pay back previous payday loans. The average interest rate on payday loans in Florida is 304 percent. It is hard to honestly claim that an unregulated payday loan industry is in the public interest and impossible to state that Florida is effectively regulating payday lending.

In light of these facts, it is impossible for a person of conscience to support the Consumer Protection and Choice Act which would gut the protections proposed by the Consumer Financial Protection Bureau. It is incredibly disappointing that you are supporting payday lenders in their attempts to escape regulation, and even more disappointing in light of the campaign contribution you recently received from payday lenders. I urge you to reconsider your stance–Americans need protection from predatory lenders.

Sincerely,

[Your Name Here]

Photo Credit: frankieleon

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