New rules released by the Consumer Financial Protection Bureau to regulate predatory payday lending today mark a victory for working families in America who fall prey to financial exploitation. The Patriotic Millionaires for Fiscal Strength advocate for a more regulated payday lending industry that allows for profit, but not at the cost of entrapment.
“We don’t think it is right for lenders to loan money disregarding a borrower’s inability to repay, intending to make profit on the resulting fees and eventual default. The payday lending industry should not have a business model of trapping average Americans in the cycle of debt,” said Chair of the Patriotic Millionaires Morris Pearl, former Managing Director at BlackRock Inc., one of the largest investment funds in the world.
Formal comments with regards to all components of the proposal will be submitted to the Consumer Financial Protection Bureau by September 14th, 2016, as the bureau has set up. However, the Patriotic Millionaires wish to emphasize now that the proposed rules could be a strong first step in the right direction towards regulating an unruly industry. Lenders should not be planning to profit from individuals who can not afford to borrow, just as individuals should not plan to rack up fees on loans they have no intention to repay.