Yesterday, CEI released a new paper by Daniel Press, How the Consumer Financial Protection Bureau’s Payday Loan Rule Hurts the Working Poor. This paper explores the pitfalls of the CFPB’s small-dollar loan rule, which was meant to protect low income Americans, but instead leaves them vulnerable and without other credit options.
The CFPB, under the temporary leadership of Office of Management and Budget Director Mick Mulvaney, announced that it would delay implementation of the rule while the agency considers how to roll it back. While this is a promising step, Congress should use the Congressional Review Act to dismantle the rule entirely.
It would seem as if the CFPB didn’t consult those who would be affected by this rule, because as you can see in the infographic below, an overwhelming majority of payday-loan customers approve of the payday-lending industry.