New Payday Loan Debt Tracker Tool Launched
By Grace Austin
A group of anti-payday loan organizations are tracking how much Americans are spending on payday loans, designed to show how detrimental the loans are to consumers.
The website Payday Loan Debt Trap Tracker shows the estimated fees paid by Americans to payday and title lenders, now according to the website upward of $700 million. The goal by the coalition of groups is to illustrate the fees that add up when consumers take out these sort of loans.
“Every moment without federal consumer protections on these loans means more consumers are left unprotected from the devastation caused by this predatory industry,” said Linda Jun, senior policy counsel of Americans for Financial Reform, in a press release. “This tracker is a numerical representation of the damage her inaction is causing.”
According to the Stop the Debt Trap coalition, consumers are losing more than $200 per second.
The coalition argues that, in some places, lenders can charge more than three hundred percent APR on loans. Many of those loans are then rolled over or renewed. Since borrowers are often incapable of paying back the first loan, they eventually end up in a cycle of debt.
“This debt trap tracker gives us a valuable glimpse into how much money payday lenders’ debt trap strips away from some of the most financially vulnerable Americans,” said Rebecca Borné, senior policy counsel at the Center for Responsible Lending.
The Stop the Debt Trap coalition includes hundreds of groups, including the Center for Responsible Lending, the Main Street Alliance, the Woodstock Institute, the Consumer Federation of America, Public Citizen, Allied Progress and others. The groups are brought together by their opposition to “the CFPB’s effort to repeal the current rule on payday lending.”