PayDay Lending is hard money lending for desperate folks. It is an ugly business with interest rates up to 400% on small loans up to $1000. Critics call it outlandish, but if you need to pay a medical bill, or have to fix the car, it might be the only place that can help.
-
The watchdog agency said in a statement Tuesday that it intends to “reconsider” a regulation, issued in October, that would have required payday lenders to vet whether borrower can pay back their loans. It also would have restricted some loan practices.
-
If the rule is thrown out or rewritten, it would mark a major shift for an agency that had zealously pursued new limits on banks and creditors before Mick Mulvaney, President Trump’s budget director, became the CFPB’s acting director.
-
Tuesday’s announcement does not amount to a formal repeal of the payday lending rule. But it does cast doubt on whether it will ultimately be implemented.
This will be interesting to watch as it may indicate a shift between Obama protectionism and Trump free market control. There are polar opinions on Payday Lending. Some say it is predatory, other’s say it is optional. Either way, a shift indicate extreme change in the CFPB.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
Read the quoted story here
