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Federal and state governments can and really should protect borrowers

Federal and state governments can and really should protect borrowers

Very long after those who destroyed their jobs go back to work, the economic harm from the pandemic will linger. Bills will accumulate, and protections that are temporary evictions and home loan foreclosures likely will disappear. Some struggling Alabamians will check out payday that is high-cost name loans in desperation to cover rent or resources. If absolutely nothing modifications, most of them shall wind up pulled into monetary quicksand, spiraling into deep financial obligation without any base.

State and governments that are federal can provide defenses to stop this result. During the federal degree, Congress will include the Veterans and Consumers Fair Credit Act (VCFCA) in its next COVID-19 reaction. The VCFCA would cap pay day loan rates at 36% APR for veterans and all sorts of other customers.