NAACP Applauds Crack Down on Bank Payday Lending
Posted on November 22, 2013 by NAACP Staff
The NAACP applauds 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.
The Consumer Financial Protection Bureau revealed its first enforcement action against one of the nation’s largest payday lenders, Cash America, for violating lending laws and destroying records to mislead federal officials.
Dedrick Muhammad, NAACP Sr. Director of Economic Department, is inspired by this action:
We are encouraged by the CFPB, OCC and FDIC's latest efforts to crack down on payday lending and that they are moving on all fronts to protect our communities from economic exploitation.
Hilary Shelton, NAACP Washington Bureau Director and the Sr. VP of Policy and Advocacy, notes this advancement in economic justice:
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.
The NAACP urged the FDIC and the OCC to take strong actions to stop predatory payday lending. 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.