CFPB holds hearing on payday and car name loans in Richmond, VA

CFPB holds hearing on payday and car name loans in Richmond, VA

On March 26, the CFPB held a hearing that is public payday and automobile title lending, exactly the same time it circulated proposed laws for short-term small-dollar loans. Virginia Attorney General, Mark Herring provided starting remarks, during which he asserted that Virginia is regarded as the “predatory lending capital associated with the East Coast,” suggesting that payday and car name loan providers had been a sizable the main issue. He stated that their workplace would target these loan providers with its efforts to control abuses that are alleged. He additionally announced a few initiatives geared towards the industry, including enforcement actions, training and avoidance, legislative proposals, a state run small-dollar loan system, and an expanded partnership because of the CFPB. The Commissioner of Virginia’s Bureau of banking institutions, E. Joseph Face, additionally offered brief remarks echoing those associated with Attorney General.

Richard Cordray, director associated with the CFPB, then offered remarks that are lengthy that have been posted online the early early morning ahead of the hearing occurred and tend to be available here. His remarks outlined the CFPB’s brand new “Proposal to End Payday Debt Traps.” Cordray explained and defended the CFPB’s proposed regulations that are new. A few lines of his speech revealed the impetus behind the CFPB’s proposed regulations and one reason why they are fundamentally flawed while most of what he said was repetitive of the lengthier documents that the CFPB published on the topic. Continue reading “CFPB holds hearing on payday and car name loans in Richmond, VA”