Alabama Consumers Speak Out Surrounding First CFPB Hearing on Payday Lending

Consumer Rights Coalition (CRC) shares member stories about their use of short-term credit during natural disasters, health emergencies and economic difficulties

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Consumer Rights Coalition

Jan 19, 2012, 09:50 ET

BIRMINGHAM, Ala., Jan. 19, 2012 /PRNewswire/ -- Consumer Rights Coalition, a national consumer organization dedicated to improving and expanding access to short-term credit options, released the stories of several Alabama payday loan consumers in an effort to ensure the stories of real consumers are considered during the Consumer Financial Protection Bureau's (CFPB) first field hearing on payday loans in Birmingham today.

CRC is an organization of more than 210,000 consumers nationwide, and nearly 2,500 in Alabama, who use short-term, non-bank financial products to manage their household finances.

A recent study found that 64 percent of Americans do not have $1,000 on hand in case of an emergency. As a result, today almost 20 million Americans are turning to non-bank financial products, like check cashing, installment, payday and pawn loans. Consumers choose short-term loans because they are usually the most cost effective and least credit-damaging option available.

As a consumer organization focused on expanding and improving credit options, we support the CFPB's mission to improve transparency of all consumer lending products; create a level playing field between banks and non-bank lenders; and ensure that all financial products and services are fair.

The CFPB has asked Americans to share their consumer loan experiences with them. We are pleased to offer the stories of a few CRC members in Alabama that demonstrate the importance of access to short-term credit:

I am a survivor of the April 27, 2011 tornado that devastated Tuscaloosa. We lost everything and I was hospitalized for a month from injuries inflicted in the tornado. We had home insurance, but were turned down by FEMA, which hurt us financially. We have been able to slowly get back on our feet, due to help from payday loans. We truly thank them for being there for us.
Sharon K., Tuscaloosa, AL

Banks have made it so hard to borrow money, especially without any collateral. Being a single woman who is taking care of aging parents, short-term payday loans are a life saver. These loans are the only chance many of us have to keep our heads above water, taking them away would be detrimental to so many.
Sandra F., Anniston, AL

Without payday loans I would be more behind on my bills than I am. I would also be in foreclosure. Due to family illness, an ex-husband behind on child support, a daughter in college... I have no option but to use these types of loans in order for my family to survive. Paying a fee each month is better than $38 for bounced checks &/or no payment. If you take these options away, I will be forced to file bankruptcy &/or be homeless. And, yes-I work 40(+) hours a week--I get NO government assistance. I used to be middle class--but, now find myself drowning and in worse shape than any of the "poor" people I work with every day that get more in food stamps than I spend on my own family using my own money. I am frustrated and defeated.
A. Bridges, Athens, AL

For more stories from Alabama and other CRC members from across the country, please go to http://consumerrightscoalition.org/share-your-story/

About Consumer Rights Coalition

The Consumer Rights Coalition (CRC) is a consumer-based organization dedicated to ensuring that Americans will continue to have access to all forms of credit. CRC's membership is made up of more than 210,000 consumers from across the nation who uses a variety of retail or short-term financial products to manage their households. We have joined together in order to have our voices heard so we can protect the credit options available to us and continue to make our own financial decisions. For more information, visit us at www.consumerrightscoalition.org.

SOURCE Consumer Rights Coalition