Delaney: Trump’s Decision to Allow Payday Lenders to Prey on Working Families is Wrong
Delaney rebukes the Trump administration’s decision to loosen regulations on predatory lenders
FRIENDSHIP HEIGHTS, MD – This week, the Consumer Financial Protection Bureau (CFPB) proposed rolling back the Obama-era rules that would require lenders to take steps to ensure borrowers can afford to repay loans before they are approved. Payday lenders have a long history of exploiting Latino and African-American communities because of limited access to affordable financial services.
“Under this administration, the CFPB has abdicated its fiduciary obligations to the American people by softening its regulatory restrictions on payday lenders that prey on the vulnerability of low-income families,” said Congressman John Delaney. “The CFPB’s proposal to roll back common-sense measures meant to protect consumers is the most recent attempt by this administration to allow the egregious behavior of predatory lenders to go unchecked.
“In Congress, I introduced legislation that would create non-profit banks to serve economically distressed communities, giving struggling families access to alternative, affordable financial services. As an entrepreneur and former CEO of two publicly-traded companies, I believe in the power of the free-market, but I also believe that government has a responsibility to the American people to ensure that bad actors do not abuse the system by targeting the most vulnerable.”
In Congress, Delaney introduced the Equal Access to Banking Act, legislation that would give more Americans access to affordable financial services instead of relying on higher-cost alternatives such as payday lenders. This bill allows non-profits to form as banks and offer low-cost services to people in economically-distressed communities. Studies show that roughly half of African-American and Latino households are disconnected from the financial system, limiting economic opportunity and investment in many communities.