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Congresswoman Jennifer Wexton presses CFPB director on predatory car title lending rule

Jennifer WextonCongresswoman Jennifer Wexton (VA-10) participated in the Financial Services Committee hearing, Putting Consumers First? A Semi-Annual Review of the Consumer Financial Protection Bureau.

During this hearing, the newly appointed Director of the Consumer Financial Protection Bureau (CFPB), Kathy Kraninger, appeared before Congress to provide the Bureau’s semi-annual report to Congress.

In light of a recent decision by the Consumer Financial Protections Bureau to block a rule meant to protect buyers from predatory payday and car title lenders, Congresswoman Wexton asked Director Kraninger several questions, with specific reference to the impact car title lending has had onconsumers in Virginia.

“Director Kraninger issued non-answer after non-answer and refused to engage in a good faith discussion on the impacts of car title lending in Virginia. This underregulated industry has trapped tens of thousands of Virginia consumers in a vicious cycle of debt,” said Congresswoman Jennifer Wexton. “I’m deeply troubled by Director Kraninger’s decision to side with payday and car title lenders over consumers. The CFPB should be protecting consumers from predatory lenders, not the other way around.”

Key Statistics from Virginia Bureau of Financial Institutions:

  • 42,690 – Total number of individual borrowers that failed to make a monthly payment on a motor vehicle title loan for at least 60 days in 2017.
  • 122,55 – Total number of individuals to whom motor vehicle title loans were made in 2017.
  • 14,621 – Total number of motor vehicles that were repossessed by or on behalf of motor vehicle title lender licensees in 2017.
  • 348 – Average term in days of motor vehicle title loans made in 2017.
  • 215% – Average annual percentage rate charged on motor vehicle title loans in 2017.

augusta free press
augusta free press