WASHINGTON, D.C. – Today, U.S. Sen. Sherrod Brown – chairman of the Banking Subcommittee on Financial Institutions and Consumer Protection – pressed CFPB Director Richard Cordray on the need for renewed efforts by the Bureau to protect student borrowers and working families from predatory practices in the financial services industry.
“The CFPB plays an important role in ensuring Ohio families are not taken advantage of by deceptive practices,” Brown said. “Whether it’s better disclosure of student loan policies or ensuring families aren’t charging exuberant fees to cash a paycheck, we need more robust consumer protection. Hardworking Ohio families who play by the rules should not be the victim of predatory products or predatory lending tactics that harm our communities and our economy.”
Last week, Brown joined Olivia Katbi, the sister of a 24 year-old Delphos, Ohio, native who was tragically killed weeks before his law school graduation, to announce a new plan aimed at preventing families of deceased borrowers or loan co-signers from being harassed by lenders. The call followed a hearing of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection chaired by Brown that examined the often troublesome relationship between student loan servicing companies and borrowers.
In March, Brown called attention to issues affecting unbanked and “underbanked” Americans, including payday loans, installment loans, auto title loans, and deposit advance loans. Brown pointed to recent figures that showed more than two million Americans use payday loans – an industry that generates more than $80-billion per year and outnumbers the combined amount of McDonalds and Starbucks in the United States. Brown called on the CFPB that these small-dollar lending product remain affordable and sustainable in today’s economy.