Complaints about payday loans decreased 27 percent between September to November 2015 (460 complaints) and September to November 2016 (334 complaints), according to the Consumer Financial Protection Bureau's (CFPB) December consumer complaint report.
The Bureau's proposed small-dollar lending rule fails to address illegal and abusive debt collection practices employed by scam artists posing as legitimate payday lenders. The CFPB continues to ignore customer feedback as it moves forward with regulations that will severely limit consumers' access to credit and force thousands of regulated payday storefronts to close.
Overall, payday loans account for just 1.6 percent of all complaints to the Bureau.
According to the Wall Street Journal, the CFPB has received over a million comments surrounding its proposed payday lending rule, the vast majority of which appear to be from consumers who have utilized payday loans and who do not want the Bureau limiting their access to credit. Combined with the record low levels of complaints raised through the CFPB's portal, it is clear that if the Bureau moves forward with its proposed rule, it will be substituting its own paternalistic bias for the will of the consumers it claims to be protecting.
Continued, Steady Decline Evidence that Consumers Value Short-term Loans
This is the sixteenth report in a row in which payday loans have seen a double-digit decline:
- Vol. 18; December 2016: 27 percent decline
- Vol. 17; November 2016: 22 percent decline
- Vol. 16; October 2016: 21 percent decline
- Vol. 15; September 2016: 18 percent decline
- Vol. 14; August 2016: 19 percent decline
- Vol. 13; July 2016: 15 percent decline
- Vol. 12; June 2016: 15 percent decline
- Vol. 11; May 2016: 19 percent decline
- Vol. 10; April 2016: 14 percent decline
- Vol. 9; March 2016: 14 percent decline
- Vol. 8; February 2016: 12 percent decline
- Vol. 7; January 2016: 11 percent decline
- Vol. 6; December 2015: 14 percent decline
- Vol. 5; November 2015: 20 percent decline
- Vol. 4; October 2015: 24 percent decline
- Vol. 3; September 2015: 12 percent decline