Payday loans often trap consumers in a cycle of debt due to lump sum payments, high annual percentage rates (APR), and little consideration of whether borrowers can afford to repay their loans. To combat this, the CFPB is developing new rules for payday loans. In an initial outline of the proposed rules, the CFPB proposed to require that lenders verify a borrower’s ability to pay back a loan while still covering basic necessities and existing debts, among other protections.
In 2014, eight Illinois organizations received over $2.8 million to help enforce fair housing rules. Budget cuts would limit these organizations’ ability to meet critical needs, such as conducting fair housing testing; supporting the recovery from the foreclosure crisis; and advancing the housing rights of people of color, people with disabilities, veterans, seniors, and other underserved communities.
The Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Education have taken action against for-profit colleges, most notably Corinthian Colleges. In the past year, the CFPB and the Department of Education cut off Corinthian Colleges’ access to federal loans and it agreed to sell most of its campuses in July 2014.
Sen. Durbin’s proposed bill:
Our nation continues to face a student debt crisis, with students and graduates carrying nearly $1.2 trillion in outstanding student loan debt. Balances of student loans have surpassed both auto loans and credit cards, making student loan debt the nation’s largest form of consumer debt outside of mortgages.
Private loans have no limits on>interest rates and few repayment plans, unlike federal loans, for which income based repayment is available to borrowers.
Among the bill's protections:
Sen. Mark Kirk (R-IL) voted today to filibuster a vote on President Obama’s nomination of Congressman Mel Watt as the director of the Federal Housing Finance Agency (FHFA). The motion to allow Congressman Watt’s confirmation vote failed on a vote of 56-42 (60 votes are necessary to proceed). The FHFA is a powerful agency that regulates Fannie Mae and Freddie Mac, which invests in more than three-fourths of the nation’s new mortgages. Sen. Richard Durbin (D-IL) voted against the filibuster.
The Protecting Consumers from Unreasonable Credit Rates Act would limit abusive lending practices and create a fairer playing field for all consumers.