H.R.1214 - Payday Loan Reform Act of 2009 Sponsor: Luis Gutiérrez / 111th Congress

Title
111th Congress - To amend the Truth in Lending Act to establish additional payday loan disclosure requirements and other protections for consumers, and for other purposes. hidemore...
Summary
To amend the Truth in Lending Act to establish additional payday loan disclosure requirements and other protections for consumers, and for other purposes. (by CRS)
Status
The bill has been introduced.

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Interests who did want this bill to become law included these interests and specific groups:

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Contribution data provided by the Center for Responsive Politics (OpenSecrets.org)

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Wolf in Sheep's Clothing? by Karen Chung, Mar 30, 2009 (7:59pm)

Both consumer groups and the payday loan trade association are against H.R. 1214 (111th). The trade association (Community Financial Services Association of America) opposes the bill because its loan fee cap “goes too far.” On the other hand, consumer groups argue that although the bill is called the Payday Loan Reform Act, H.R. 1214 actually condones predatory lending. The bill seems to provide consumer protections, such as a loan fee cap, but these protections would not stop payday advances from becoming “debt traps” for borrowers. First, the loan interest cap itself is a weak attempt at scaling back the exorbitant interest rates on payday loans. Second, the bill ignores the problem of the cyclical effect of payday lending: borrowers are incapable of repaying “the entire principle and interest from a single paycheck in just two weeks” without taking another loan.

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