Page to Rep. Wasserman Schultz from the вЂњConsumer Protection and Selection ActвЂќ 1 compromise on payday financing in Florida, its clear that regulations
Recipient: Debbie Wasserman Schultz
The Honorable Debbie Wasserman SchultzUnited States Home of RepresentativesWashington, DC 20515
Dear Representative Wasserman Schultz:
A coalition of more than 200 national advocacy organizations, we write to urge you to withdraw your cosponsorship of H.R. 4018, the вЂњConsumer Protection and Choice Act. on behalf of The Leadership Conference on Civil and Human RightsвЂќ We realize that you have got heard from numerous advocates, both within Florida and through the entire nation, in regards to the approach that is troubling by this bill. Because of the harm that is serious lending causes into the communities we represent,  and after reviewing H.R. 4018, we should align ourselves with all the issues which have been raised.
H.R. 4018 would impose a moratorium that is two-year any rulemaking by the customer Financial Protection Bureau (CFPB) that could manage вЂњdeferred presentment transactionsвЂќ вЂ“ better known as, although not restricted to, alleged вЂњpayday loans.вЂќ After both of these years, it might exempt any state from CFPB payday lending legislation in the event that state has enacted a regulatory system this is certainly like the the one that presently exists in Florida.
Regardless of motives behind the 2001 compromise on payday financing in Florida, it really is clear that what the law states has did not get rid of the problem that is fundamental loan providers verify that borrowers have actually a income source which you can use to settle loans, nonetheless they try not to confirm that borrowers are able to settle their loans while nevertheless fulfilling their other obligations such as for instance lease, meals, and utilities.