The Consumer Voice - Gerri Guzman, CRC Executive Director
It’s About You!
Will you continue to have access to short-term credit? The answer is up to you!
Last week, the Consumer Financial Protection Bureau (CFPB) held its first hearing on payday loans in Birmingham, Alabama as it begins to consider how best to regulate payday lenders.
In a packed auditorium, consumer advocates, bank representatives, payday lenders, and consumers all spoke up to give Director Richard Cordray their opinion.
I am happy to report that our Alabama consumers stood up and were heard! Hardworking Alabamians described payday loans as a lifeline that has helped them when they needed it most.
Media reports featured stories from consumers who have relied on these loans. Consumers like LaDonna Banks, who had taken out a payday loan in advance of a disability check she was receiving when she had to take time off of work to recuperate from donating a kidney to her brother.
It’s so easy to write-off something as bad when you don’t understand it or have never needed it, but reading stories like Ms. Banks’ really brings home the need for short-term credit. Sometimes we get stuck and we have nowhere else to turn. Sometimes a bank or a family friend isn’t an option.
Thank you to all of you who have shared your stories with us and with the CFPB. They really are making a difference.
If you haven’t yet done so, please submit your story to the CFPB. They continue to ask for stories so that they can make reasonable regulations. These regulations will determine whether or not you will still have access to a variety of credit options, like payday or installment loans.
We will continue to work on your behalf to develop an effective two-way communication with the CFPB. We support their mission to improve transparency of all consumer lending products; create a level playing field between banks and non-bank lenders; and ensure that all financial products and services are fair.
Now is the time to speak up! Submit your story today!
