Senator Dick Durbin. Comprehensive text of Durbin’s prepared testimony is available below:
WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), a longtime champion of legislation to rein in the predatory payday lending industry, today presented testimony towards the home Financial solutions Subcommittee on customer Protection and banking institutions hearing on ending debt traps within the payday and tiny dollar credit industry. The subcommittee will talk about the Protecting customers from Unreasonable Credit Rates Act of 2019, a bill Durbin reintroduced yesterday that will eradicate the extortionate prices and high charges charged to customers for pay day loans by capping rates of interest on customer loans at a yearly portion price (APR) of 36 percent—the same restriction currently set up for loans marketed to army solution - people and their loved ones.
Chairwoman Waters, Subcommittee Chairman Meeks, people in the subcommittee:
Many thanks for permitting us to submit testimony about this crucial customer security problem. We all know that nearly 12 million cash-strapped Americans are charged interest levels surpassing 300 % for payday advances, and that the payday financing industry gathers about $8 billion in charges every year because of this.
But there are 2 figures that actually tell the storyline concerning the payday financing industry for me personally: “75 %” and “10”—75% of all of the costs gathered by the pay day loan industry are produced from borrowers who've been obligated to restore their loans significantly more than 10 times in a provided 12 months simply because they lacked the capability to repay the total loan.Read more
