Federal Payday Lending Rule Could Face Repeal Amid New Battle
USA Today covers the Consumer Financial Protection Bureau’s decision to delay the small-dollar loan rule.
Consumer advocates and business groups are battling anew over the possibility the Trump administration will eliminate a rule enacted to ensure that borrowers who take out high-interest loans between paychecks can pay them back.
Clashing with support for a repeal by business groups, the policy arm of product tester Consumer Reports and other organizations say the so-called payday lending rule finalized last year by the U.S. Consumer Financial Protection Bureau should be fully implemented as soon as possible.
In a report issued Wednesday, the libertarian Competitive Enterprise Institute cited a story about a single mother from Oakland, Cal. who took out a small-dollar loan to pay for an urgent car repair. Without that money, she likely faced a choice between losing her job or losing her apartment, the report said.
“Taking out such a high-cost loan may not be ideal, but many consumers have no better options,” the CEI report said.
Read the full article at USA Today.