Payday Loan Reform Advocates Appeal to Federal Government
Efforts to get payday loan reform in Louisiana failed in the state legislature during the recently concluded session. The advocacy group Together Louisiana has since sent a letter to the Consumer Financial Protection Bureau asking for safeguards to be enacted nationally.
Together Louisiana wants the bureau to implement new rules that would prohibit issuing payday loans to borrowers already in debt or unable to afford repayment, and increase the reporting requirements on payday loan transactions.
"“What we’re pushing for is a regulatory rule by the Consumer Financial Protection Bureau that fully addresses the debt trap," said Broderick Bagert, Together Louisiana's lead organizer.
Consumer Financial Protection Bureau Director Richard Cordray made a public appearance in New Orleans Thursday where he addressed mobile financial services. Questions concerning payday loans went unanswered.