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Share your input on payday lending for the official record

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Public input is tremendously important to our work at the CFPB. At our January field hearing in Birmingham, we had the opportunity to gather information directly from Alabamans about their experiences with payday loans.

We’d also like to hear from you. The CFPB is inviting public comments for the record. Please take this opportunity to share your thoughts and insights.

Payday loans are typically marketed as a way to get quick cash when you need it. They generally have three features: the loans are for small dollar amounts; borrowers must repay the loans quickly; and the loans require that a borrower give lenders access to repayment through a claim on the borrower’s deposit account.

We heard and learned a lot at the Birmingham forum, and we know that there are many others around the country who may wish to add to the dialogue. Please tell us your experiences!

You can also watch Director Cordray’s opening remarks from Birmingham below, or read the transcript of the entire event, including what we heard from the public.

  • Christine Cape

    I live in a high poverty community where many residents use payday loan institutions.  There definitely needs to be more regulations on these businesses along with practical consumer education in schools and also available to adults.

  • Aynon

    I am a business owner.  I think payday loans should not be regulated out of existance as they provide value to the market at the margin for some consumers.  Instead, regulate the interest rate these businesses are allowed to charge.  Almost all other lending institutions have a maximum rate of interest that they are allowed to charge on the money lended.  I have seen a contract from one of my employee’s that took out a payday loan that had an interest rate of ~250% APR!  Imagine if your home loan had a 250% APR!  To complicate the matter, the people that are taking out these loans are doing so when they are most in need and are usually desperate.  This makes the customers very susceptible to being ripped off as they will agree to almost anything to pay their rent, or car payment, or medicine, or whatever.  Regulate the interest rate but keep the business.

  • Nap LeLievre

    As clearly as the presentation was, I am confused by the two comments made about payday loans.  Their comments seeem to be anti-payday loans because of the fluctuating rates of interest that were given. Am I in the minority about this confusion.

The CFPB blog aims to facilitate conversations about our work. We want your comments to drive this conversation. Please be courteous, constructive, and on-topic. To help make the conversation productive, we encourage you to read our comment policy before posting. Comments on any post remain open for seven days from the date it was posted.