Washington, D.C. -- Congresswoman Terri Sewell will soon introduce legislation to better protect consumers as a follow-up to President Obama’s March visit to Birmingham where he outlined the stronger need for payday lending requirements.

Today, Congresswoman Sewell outlined the urgent need for reform on the floor of the U.S. House of Representatives. A video of her speech is available online at https://sewell.house.gov/media-center/videos. Below is the text of her floor speech:

Thank you Mr./Madam Speaker,

Today I rise to talk about the critical need for stronger oversight of payday lenders.

In March, I welcomed President Obama to the City of Birmingham in my district, where he highlighted our nation’s economic recovery and put a spotlight on the area that needed most improvement. The President highlighted the urgent need for better regulation of the payday lending industry the very same day that the Consumer Financial Protection Bureau unveiled proposals to rein in this loosely-regulated industry.

I hope that my colleagues will join me in supporting the CFPB’s efforts to ensure that these products help -- not harm -- consumers. The payday lending and title loan industry must take steps to ensure that borrowers understand the loan terms and have the resources to pay them back. 

In my district, the proliferation of payday lending is really unacceptable. On every corner, you will find a payday lender. In fact the President quoted that there were more payday lending institutions in my district than there were McDonald’s.

These borrowers are disproportionately African American or Latino – two communities that were severely impacted by the predatory lending practices – and far too many of these borrowers find themselves trapped in a cycle of debt.

In the coming weeks, I plan to introduce a bill and to spearhead efforts led by consumer industry groups to protect consumers from predatory lending. I ask my colleagues to join me. These good people are my constituents, and not this industry’s prey.

###