400%?: THERE OUGHTTA' BE A LAW!

The Issue

ASK CONGRESS TO SUPPORT A 36% CAP ON ANNUAL INTEREST FOR CONSUMER LOANS

Payday loans carry an annual interest rate of 391 percent and are so difficult to pay off that many borrowers end up paying more in interest than they originally borrowed.




Payday lenders flip their loans to the same borrowers many times per year, either by rolling them over for another term, or closing them out and re-opening them. The terms set borrowers up for failure.



For a $500 loan at 36% APR, fees are $180 over one yearFor a $500 loan at 391% APR, fees are $1,955 over one year

Twelve million Americans are caught in the trap every year. Their payday lending stories illustrate the damage caused by the debt trap. The average borrower pays back $800 for a $300 loan, a loss of $500 that goes purely toward interest.

Put an an end to high-interest consumer loans and support a 36% APR cap.

avatar of the starter
CENTER FOR RESPONSIBLE LENDINGPetition StarterThe Center for Responsible Lending is a nonprofit, non-partisan organization that works to protect homeownership and family wealth by fighting predatory lending practices. Our focus is on consumer lending: primarily mortgages, payday loans, credit cards, bank overdrafts and auto loans. Since we began in 2002, we have witnessed, studied, and fought against outrageous lending abuses that strip billions of dollars from American families.
Media inquiries
This petition had 51 supporters

The Issue

ASK CONGRESS TO SUPPORT A 36% CAP ON ANNUAL INTEREST FOR CONSUMER LOANS

Payday loans carry an annual interest rate of 391 percent and are so difficult to pay off that many borrowers end up paying more in interest than they originally borrowed.




Payday lenders flip their loans to the same borrowers many times per year, either by rolling them over for another term, or closing them out and re-opening them. The terms set borrowers up for failure.



For a $500 loan at 36% APR, fees are $180 over one yearFor a $500 loan at 391% APR, fees are $1,955 over one year

Twelve million Americans are caught in the trap every year. Their payday lending stories illustrate the damage caused by the debt trap. The average borrower pays back $800 for a $300 loan, a loss of $500 that goes purely toward interest.

Put an an end to high-interest consumer loans and support a 36% APR cap.

avatar of the starter
CENTER FOR RESPONSIBLE LENDINGPetition StarterThe Center for Responsible Lending is a nonprofit, non-partisan organization that works to protect homeownership and family wealth by fighting predatory lending practices. Our focus is on consumer lending: primarily mortgages, payday loans, credit cards, bank overdrafts and auto loans. Since we began in 2002, we have witnessed, studied, and fought against outrageous lending abuses that strip billions of dollars from American families.
Media inquiries

Petition Updates

Share this petition

Petition created on June 8, 2009