WASHINGTON, D.C. – Following Tuesday’s Ohio Supreme Court ruling weakening efforts to protect Ohio consumers from predatory loans, U.S. Sen. Sherrod Brown – chairman of the Banking Subcommittee on Financial Institutions and Consumer Protection – reaffirmed his call for the Consumer Financial Protection Bureau (CFPB) to finalize efforts that would protect consumer from high-cost, small-dollar loans.
“We've seen how Ohio payday lenders have stayed one step ahead of the sheriff,” Brown said. “First, they evaded state law to protect consumers from traditional payday loans by reorganizing their business practices around a different section of the law and moving to equally predatory auto title loans. Now, the Ohio Supreme Court has opened the door for payday lenders to sidestep laws put in place to rein in their abusive practice. It’s time for federal action from the CFPB to prevent a race to the bottom that traps Ohioans into lifetimes of debt.”
Yesterday, during the Senate Banking Committee’s hearing on the CFPB’s Semi-Annual Report to Congress, Brown pressed Director Richard Cordray on the need for renewed efforts by the Bureau to protect working families from predatory practices in the financial services industry.
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.