Senator Warren Acknowledges Article, “New Source of Funding for Illegal Drug Industry”
LIBERTY, May 25, 2013 - On February 20, 2013 i-dineout.com published an investigative report concerning the PayDay and Car Title Loan industry and how it had become a new source of funding for the illegal drug industry.
See related story… New Source of Funding for Illegal Drug Industry
We sent our report and our findings to Senator Elizabeth Warren who has been an advocate for the public in the areas of consumer and household lending.
Senator Warren’s reply to our letter is below….
Thank you for contacting me to share your concerns about payday lending.
For years, I have worked to advance policies to level the playing field for consumers and to hold financial institutions accountable when they break the rules. As you may know, I strongly supported the creation of the new Consumer Financial Protection Bureau (CFPB) and worked in Washington in 2010 and 2011 to help set it up. The CFPB is charged with implementing and enforcing various consumer protection laws -- including those pertaining to payday lending -- and I am proud of its early efforts to rein in abusive loans and promote accountability.
Payday lenders do not have a presence in Massachusetts, but I have been concerned about emerging business practices of online payday lenders and have been monitoring this issue. That is why I was proud to cosponsor legislation proposed by my colleague Senator Merkley of Oregon - the Stopping Abuse and Fraud in Electronic Lending Act ("SAFE Lending Act") - to crack down on the worst practices of the online payday lending industry and to give states more power to protect consumers from abusive loans. The bill has since been referred to the Senate Committee on Banking, Housing, and Urban Affairs for further consideration.
Thank you for reaching out to me, and I will keep your thoughts in mind.
Give us your Feedback about this story!