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03-31-2016, 08:57 PM #1
Further Delays in Payday Lending Regulations
The CFPB has been trying for some time to enact some meaningful reform of payday lenders. And new rules were originally supposed to be published in late 2015. And then by February 2016. But reports are now coming out that we may have to continue to wait.
I am not sure how long American consumers needing access to fast credit to keep the lights on or get the car repaired can wait.
It is time we reformed these high cost loans that perpetuate a cycle of debt. And hopefully it can be done in a manner that allows consumers to both be protected and still have access to credit.
04-01-2016, 08:04 AM #2
Where I live, they shut down the payday lenders. But people just go online. Or worse - they use title pawn. So if you can't pay off your ridiculously expensive $500 loan, they can repossess your whole car. Which is just a step backwards. These lenders just prey on the desperate.
04-01-2016, 01:48 PM #3
I need to admit taking one out in my 20s. And, you know what, it saved the day. It cost a ton for what it was. But I also had no other alternative source of cash.
I just wish there was some way to lend money that will not trap people in a cycle of debt. Hopefully the new regulations will lead the way. And maybe the marketplace needs a big kick in the pants. After all, why charge less than 350% APRs until you have to.
04-05-2016, 07:50 AM #4
If the CFPB is able to ever out together a coherent and sensible regulatory regime, hopefully the smart people at big banks and silicon valley might get involved and figure out how to provide a sensible product. And some rules to keep people from taking on too much debt as well.
Probably just a pipe dream. They'll end up just regulating the whole industry out of business and forcing desperate borrowers into the hands of organized crime.
04-07-2016, 08:37 AM #5
If the military can limit loans to 36%, why can't this be the cap for all loans? Why should anyone have to have APRs 10x that amount?