Contact: Scott Fry, 701-224-0588 ext 106
*** Press Call
Advisory ***
On Thursday, June 2, the
day the Consumer Financial Protection Bureau (CFPB) unveils its proposal to
regulate payday lending, local faith, community and consumer leaders will
release new data on how much money is drained from North Dakota communities as
a result of these predatory practices.
The rule, if done well, could
rein in the worst abuses of payday and car title lending nationally, shutting
the debt trap and leaving room in the marketplace for responsible small dollar
lending.
“Payday Lending companies, under the
current lack of regulation, are no better than loan sharks. These institutions
prey on the poorest and most vulnerable of our citizens, enriching themselves
on the desperation of others. We are at a moment in time when we can do the
moral thing and sensibly regulate these businesses and protect people from the
predatory habits of these lenders,” said Waylon Hedegaard of the ND
AFL-CIO.
Advocates say the initial draft
of the CFPB rule, which requires payday lenders to make affordable loans, is a
step in the right direction but that loopholes and exemptions must be removed
for it to truly be effective.
"Payday lenders make money off of customers whose
income is on average $30,000 or less. Many of these customers can't afford the loans
and get trapped in a vicious debt cycle, unable to pay that initial loan off,”
said Lorraine Davis, Native American Development Center, Executive Director
The rule will be finalized after
a public comment period of approximately 90 days.
WHO: Waylon Hedegaard, ND AFL-CIO; Lorraine Davis, Native American Development
Center
WHEN: Thursday, June 2 at 9:15am CDT.
WHERE: Please Call in at:
1-888-346-3659, Passcode: 4258#
WHAT: Press call to release new data on payday and car title
lending in North Dakota, respond to CFPB proposed national rule released the same
day.
#
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