In addition to building a social safety net that helps Washingtonians living on a low income meet their basic needs, we are working to help families keep money in their pockets by bolstering consumer protections. Predatory lending is a persistent threat to the material well-being of millions of Washingtonians. The economic hardship of the last four years has worsened this threat, forcing many to use credit to meet short term obligations like rent, groceries, and utility payments. People shouldn't have to go into debt to put food on the table.
Payday lenders intentionally target marginalized communities to market their loans to struggling households. The promise of quick money is swiftly dashed by the reality of high-interest rates and debt people cannot repay with the income they have. Payday loan creditors are most common in low income communities, taking away wages and locking people in a cycle of debt.
This week, lawmakers are hearing bills that would cap payday loan interest rates at 36% (as many other states do) and prevent lenders from evading Washington regulation by contracting with out-of-state banks. These common-sense bills will bring Washington consumer protection regulation into alignment with nationwide gold standards and ensure lenders are subject to that regulation, protecting consumers from predatory practices. Tell your lawmakers: Vote YES to protect consumers from predatory lending practices. |
