New House Bill Would Kill Consumer Watchdog Payday Loan Rule

Yahoo! Finance cited Daniel Press on the necessity of access for consumers to receive a payday loan.

A congressional resolution introduced in the House aims to repeal the CFPB’s rule on payday lending. It’s not the first CFPB rule to come under attack.

Congress has it in for consumer protections enacted by the Consumer Financial Protection Bureau.

A congressional resolution introduced Friday in the House would kill the CFPB’s new rule aimed at making sure borrowers of so-called payday loans can afford to repay their debt. The House measure’s cosponsors (three Democrats and three Republicans) and the rule’s critics say it will block consumers’ access to payday loans, which are short-term, small-cash loans consumers often use when they are coming up short until their next paycheck.

“The rule would leave millions of Americans in a real bind at exactly the time need a fast loan to cover an urgent expense,” said Daniel Press, a policy analyst with the Competitive Enterprise Institute, in a statement after the bill’s introduction.

Read the full article at Yahoo! Finance