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CONTACT:Mike Litt, U.S. PIRG Education Fund workplace: (202) 461-3830 Cell: (702) 427-1608mlitt@pirg.org

Report: Review of Payday Complaints Reveals Requirement For More Powerful Federal Protections

Washington, D.C. – customer complaints about pay day loans into the customer Financial Protection Bureau (CFPB) reveal a critical requirement for strengthening the agency’s proposed guideline to rein in pay day loans as well as other high-cost financing, in accordance with a written report released today by the U.S. PIRG Education Fund.

“Our analysis of written complaints towards the CFPB discovered significant proof of the problem that is major pay day loans:

borrowers can’t pay for these loans and find yourself caught in good installment loans a period of financial obligation. Ninety-one % (91%) of written complaints had been pertaining to unaffordability,” said Mike Litt, Consumer Advocate using the U.S. PIRG Education Fund.

Some key findings:

• Ninety-one per cent (91%) of all of the written explanations showed indications of unaffordability, including abusive commercial collection agency techniques, bank account closures, long-lasting rounds of financial obligation, and bank charges like overdraft charges as a result of collection efforts.