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Professor Creola Johnson gives congressional testimony to Financial Services Committee

February 5, 2020 | Faculty

An expert in bankruptcy and lending, Professor Creola Johnson presented her testimony on payday lenders to the Financial Services Committee on February 5. Johnson, the first to publish a law review article, Payday Loans: Shrewd Business or Predatory Lending?, about the payday lending industry, believes payday lending is predatory and will only become more harmful if legitimized on a national level.

The hearing, “Rent-A-Bank Schemes and New Debt Traps: Assessing Efforts to Evade State Consumer Protections and Interest Rate Caps,” featured Johnson alongside four other panelists.

“Rent-a-bank schemes are a part of keeping consumers in the dark,” she said. “Rent-a-bank schemes allow non-bank lenders to get away with charging triple-digit and quadruple-digit interest rates and not only that, but keep consumers on the hook. I call them ‘debt entrapment practices.'”