As a consumer, you have the right to be heard. The power of thousands of consumer complaints can make a huge impact on the fight against the vicious cycle of payday loans.
Payday loans are small, one-time loans aimed toward consumers who find themselves in need of a temporary financial fix. They are a form of predatory lending due to their short payback periods and extremely high interest rates.
Consumers who take out payday loans often find themselves trapped in a cycle of debt that lasts for months and results in accumulated interest rates as high as 780%. That small loan suddenly becomes a huge debt and can be very bad news for a consumer’s credit and financial situation.
But it doesn’t have to be this way! Together we can end the suffering caused by predatory lending. There are organizations and tools in place designed to give the consumer a voice and minimize the power of these lending agents.
The Consumer Financial Protection Bureau (CFPB) is, in the organization’s own words, “a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.”