July 8, 2020 Press Releases

On McSally’s Watch, Trump Guts Payday Lending Protections

On Martha McSally’s Watch, Trump Administration Guts Payday Lending Consumer Protections

PHOENIX — On Senate Banking Committee member Martha McSally’s watch, the Trump Consumer Financial Protection Bureau (CFPB) this week announced plans to reverse a consumer protection rule that prevents payday lenders from exploiting Arizonans.

The Trump CFPB’s reversal of a rule shielding borrowers from predatory payday loans  will leave “the 12 million Americans who use payday loans every year exposed to unaffordable payments at annual interest rates that average nearly 400%,” according to PEW Charitable Trusts’ consumer finance project.

“Martha McSally is staying silent as the Trump administration guts consumer protection rules that protect Arizonans from predatory payday lenders,” said Brad Bainum, Arizona Democratic Party spokesperson. “Arizonans deserve a Senator who will put them first in Washington — especially as they fight hard to get by during this pandemic and economic crisis.”

Read the coverage:

CNBC: New payday lending rules could leave 12 million Americans ‘exposed to unaffordable payments’

NPR: CFPB Strips Some Consumer Protections For Payday Loans

The Hill: Consumer bureau revokes payday lending restrictions

New York Times: Consumer Bureau Scraps Restrictions on Payday Loans

CBS News: Payday lenders won’t have to check whether borrowers can afford loans