MOTION URGES CFPB TO END “DEBT TRAP” CONSUMERS GET CAUGHT IN
Los Angeles, CA-Sept. 14—Yesterday, the Los Angeles County Board of Supervisors unanimously approved a
motion supporting the Consumer Financial Protection Bureau implementing strong federal rules to prevent
predatory lending practices by payday, car title, and high cost installment lenders. Los Angeles County is the
largest county in California and the nation to pass a motion supporting strong rules by the CFPB.
“This motion is an important way for the Los Angeles County Board of Supervisors to demonstrate that we
believe protecting families and their pocketbooks is good public policy and that we strongly support the CFPB
finalizing a rule that will prioritize borrowers over ill-gotten profits,” said Board Chair Hilda Solis, who
sponsored the motion.
“We appreciate Chair Solis’ leadership on this issue and the support of the entire Board of Supervisors in
advocating for the CFPB to finalize a strong rule that will protect customers while ensuring access to safe credit
options,” explained Liana Molina, director of community engagement at the California Reinvestment
Coalition. She added: “During the past decade, California consumers have endured legalized predatory lending
at the hands of payday, car title, and high-cost installment lenders, and the CFPB’s new rules are an opportunity
to stop these practices that create financial treadmills for the majority of borrowers.”
Los Angeles is home to the highest number of payday lenders of any city in California. Because of the structure
and terms of payday, car title, and high-cost installment loans, they worsen the financial position of most
borrowers. Research has found that lenders are disproportionately located in communities of color, and are a net
drag on the overall economy.
Los Angeles County joins a number of other cities and counties across the nation who are weighing in on the
CFPB’s rule making and urging the Bureau to protect borrowers with a strong final rule. These include
Philadelphia, Jersey City, St. Petersburg, Tucson, and San Mateo in California.