NJCA applauds President Coughlin for passing predatory lending bill

NJCA applauds President Coughlin for passing predatory lending bill

Today, the director of the NJCA’s financial justice program, Beverly Brown Ruggia, issued the following statement.

“The 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 put the interests of working New Jersey workers ahead of those of financial technology and payroll companies seeking to get rich at the expense of our families.

“S3611 / A3650 would not place any limit on fees on payday advances that companies could charge workers for early access to earned wages, allowing those companies to circumvent New Jersey loan laws designed to exactly protect themselves.” against this type of outrageous interest rate. Without these protections, workers could easily be billed the equivalent of 365% annual rates for payday advances. It exploits those in dire financial straits who 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 a public opportunity to comment, and without transparency. This bill will set a dangerous precedent that will leave workers unprotected against predatory loans in New Jersey and across the country.

“We urge all of our lawmakers to ensure New Jersey has appropriate and sufficient protections for consumer loans and to continue to stand up for 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 meeting the urgent needs of low and moderate income New Jerseyans through education and direct services.

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