(Washington, DC) The NAACP released the following statement applauding the Consumer Financial Protection Bureau (CFPB), Office of the Comptroller Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) for taking a strong stance and cracking down on bank payday lending. Yesterday, the Consumer Financial Protection Bureau revealed its first enforcement action against one of the nations largest payday lenders, Cash America, for violating lending laws and destroying records to mislead federal officials. Cash America will pay a total of $19 million to past customers for overcharging, robo-signing documents used in debt collection cases and other forms of misconduct. The FDIC and the OCC finalized a guidance that effectively directs the banks they supervise to end abusive practices inherent in payday lending. The NAACP urged the FDIC and the OCC to take strong actions to stop predatory payday lending.
From Hilary Shelton, the Director of the NAACP Washington Bureau and the Sr. VP of Policy & Advocacy
Payday lending is too often used in a manner which is predatory and unfairly targets the most economically vulnerable members of our society, states Hilary Shelton, the Director of the NAACP Washington Bureau and the Sr. VP of Policy & Advocacy. Every year, abusive payday loans strips billions of dollars of wealth from African American families and we applaud the CFPB for the enforcement action taken against Cash America. We also commend the FDIC and the OCC for their guidance on payday loans as we move one more step forward in advancing economic justice for all.