New CFPB Director Puts Target on Payday Loan Rules

The Hill covers the Consumer Financial Protection Bureau’s decision to delay the small-dollar loan rule.

The new leaders of the Consumer Financial Protection Bureau (CFPB) are taking the most significant step yet toward unwinding rules panned by the finance industry and the GOP.

The CFPB announced this week that it would delay compliance with new regulatory rules for short-term, high-interest loans, commonly known as payday loans. The agency said it is considering how to roll back those rules.

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Right-leaning policy groups say the rule would do more harm than good to low-income consumers. The Competitive Enterprise Institute (CEI), a libertarian nonprofit focused on economic regulations, argued that the cost of extending payday loans is overblown and that banning it would cause immense harm to consumers.

“Payday lenders provide a means for the unbanked to join the financial mainstream. Eliminating the already limited choices of marginalized Americans helps no one,” wrote CEI fellow Daniel Press in a report released Wednesday.

Read the full article at The Hill.