Help Close the Debt TrapWritten by Amy Scholl | Published on September 6, 2016
According to the Maine Center for Economic Policy “Payday loans notoriously carry high APRs (annual percentage rate). In Maine, the rates are as high as 217%! Strategically located in low-income neighborhoods or on the internet, payday lenders intentionally trap borrowers in debt that they cannot escape. The average payday borrower is trapped by ten transactions a year”.
While we do have laws here in Maine to prevent these traps, payday lenders still find ways to offer these high interest loans. The Consumer Financial Protection Bureau (CFPB) is working to reduce the debt trap that many consumers fall into when taking out Payday Loans. You can help providing comments about the rule that the CFPB has proposed. You can find out more about what is included in the rule by going here.
Once you have reviewed the information go here to make your comments know to the CFPB. You can comment until October 7, 2016 so make sure your voice is heard.