Nov. 7, 2013
According to a recent press release, the Consumer Financial Protection Bureau (CFPB) is now accepting complaints from borrowers who experience problems using payday loans. Payday loans are often marketed as an easy solution to a short-term cash flow problem, but can easily ensare consumers in a damaging cycle of debt as fees and interest accrue. Researchers at Pew have looked at this discrepancy between the marketing of payday loans and their reality. As they put it, "Although the loans are sold as two-week products for emergency expenses, borrowers use them to cover regular expenses and end up indebted for 5 months of the year."
Director Richard Cordray has this to say about the CFPB's move to accept complaints: “Before the Consumer Bureau, consumers who had trouble with payday lending products had few places to turn. By accepting consumer complaints about payday loans, we will be giving people a greater voice in this market.” Pew's survey of borrowers revealed that 72 percent want more regulation of these products. Consumers now have a concrete path to submit complaints and give feedback to the industry and CFPB will glean valuable information that they'll need to more effectively regulate this industry.
People who use payday loans and have a complaint have lots of options for how to get in touch with CFPB:
- Go online at www.consumerfinance.gov/Complaint
- Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
- Fax the CFPB at 1-855-237-2392
- Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244
- Unexpected fees or interest
- Unauthorized or incorrect charges to their bank account
- Payments not being credited to their loan
- Problems contacting the lender
- Receiving a loan they did not apply for
- Not receiving money after they applied for a loan