NJCA applauds President Coughlin for passing predatory lending bill

NJCA applauds President Coughlin for passing predatory lending bill

Today, NJCA Financial Justice Program Director Beverly Brown Ruggia released the following statement.

“New Jersey Citizen Action applauds Assembly Speaker Craig Coughlin for passing legislation that would have allowed predatory payday loan products to target low-wage workers and potentially trap them in a destructive cycle of debt. The president has put the interests of New Jersey workers ahead of those of fintech and payroll companies seeking to enrich themselves at the expense of our families.

S3611/A3650 would impose no fee limits on payday advances that companies could charge workers for early access to earned wages, allowing these companies to circumvent New Jersey loan laws designed to protect against exactly this type of outrageous interest rates. Without these protections, workers could easily be charged the equivalent of 365% annual rates for salary advances. It exploits those who are in dire financial straits and have no choice but to accept these impossible interest rates to make ends meet.

“This heinous legislation was released out of committee and passed without fanfare, without public opportunity for comment and without transparency. This bill will set a dangerous precedent that will leave workers unprotected from predatory lending in New Jersey and across the country.

“We urge all of our lawmakers to ensure that New Jersey has appropriate and sufficient protections for consumer loans and to continue to defend our state’s most important financial protections.”

New Jersey Citizen Action is a statewide advocacy and empowerment organization that advances social, racial, and economic justice for all, while addressing the pressing needs of low- and middle-income New Jerseyans. through education and direct services.

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