In April 2016, New Economy Project filed a federal lawsuit against the debt collection law firm Kavulich and Associates on behalf of Romain Prage, a low-income New Yorker. The lawsuit alleges that Kavulich violated federal debt collection and state consumer protection laws, and explicitly subverted New York’s Exempt Income Protection Act. Mr. Prage is seeking monetary and injunctive relief.

We urge the CFPB to issue a strong final rule that, once and for all, stops payday and other high­ cost lenders from ensnaring people and their families in a debt trap. With its ever-growing wealth and income gaps, our country cannot afford to suffer the disastrous effects of a too­-moderate rule that would allow payday lenders continued latitude to make predatory, unaffordable loans.

We, the 131 signatories to this letter, represent a diverse cross-section of elected officials, government, labor, grassroots organizing, civil rights, legal services, faith-based and other community organizations, as well as community development financial institutions. We respectfully request that the CFPB count this letter as 131 comments.

Organizations based in the 14 states, plus the District of Columbia, where payday lending is prohibited by state law, urge the CFPB to issue a final rule that will bolster states’ efforts to enforce their usury and other consumer protection laws against payday lenders, debt collectors, and other actors that seek to make, collect, or facilitate illegal loans in our states.

Community development credit unions (CDCUs) are nonprofit, community-based financial cooperatives. They offer affordable savings and checking accounts; personal, business and home loans; free financial counseling and more. As a CDCU member, you have a voice and a vote — members elect the board of directors, as well as credit and supervisory committees. The CDCUs below […]