[Congressional Record (Bound Edition), Volume 161 (2015), Part 13]
[Extensions of Remarks]
[Page 18206]
[From the U.S. Government Publishing Office, www.gpo.gov]




  CALLING UPON THE CFPB TO PROTECT OUR NATION'S VETERANS BY ISSUING A 
                       STRONG PAYDAY LENDING RULE

                                 ______
                                 

                     HON. LOUISE McINTOSH SLAUGHTER

                              of new york

                    in the house of representatives

                       Monday, November 16, 2015

  Ms. SLAUGHTER. Mr. Speaker, I rise today to honor our nation's 
veterans by asking the Consumer Financial Protection Bureau (CFPB) to 
issue a strong rule protecting our former servicewomen and men from 
predatory payday lending schemes. The CFPB should ensure that the 
federal rule leaves no room for the payday lending industry to 
circumvent laws in states like New York that have set strong, 
enforceable prohibitions on payday lending.
  Payday lenders have long targeted members of the military with 
promises of quick cash but realities of triple digit interest rates and 
even more debt. While the Obama Administration recently addressed many 
of these issues by closing loopholes in the 2006 Military Lending Act, 
our veterans are left vulnerable--and vulnerable they are indeed. The 
Department of Housing and Urban Development estimates that nearly 
50,000 veterans are homeless on any given night, and the National 
Coalition for Homeless Veterans estimates another 1.4 million veterans 
are at risk of homelessness due to poverty and a lack of community 
support networks. We must do better by those who risked their lives in 
service to this country.
  It is because of financial challenges like those faced by our 
veterans--the struggle to find affordable housing, health care and a 
living wage--that payday lending has thrived where it is permitted. But 
where it has not been permitted, such as in New York, people have found 
ways other than abusive, unfair, and predatory payday loans to address 
their financial needs. The rules issued by the CFPB must uphold the 
strong protections states like New York have in place. At a minimum, 
the CFPB should:
  Require a meaningful ``ability to repay'' standard, without 
exceptions or safe harbors;
  Provide that a violation of state usury law is an unfair, deceptive 
and abusive act and practice (UDAAP);
  Provide that payday loans are subject to the law of the state where 
the borrower resides;
  Prohibit abusive bank account access by payday lenders; and
  Include enforceable protections against abuses by lead generators and 
other third-party marketing affiliates that sell people's sensitive 
personal and financial information to payday lenders.
  On the battlefield, our military pledges to leave no servicemember 
behind. Our promise to them must be no less when they return home. They 
promised to protect and defend this nation, and we owe the same to 
them. I urge my colleagues to join me in asking the CFPB to issue a 
strong rule that is fair and that honors those who served this country.

                          ____________________