The Daily Caller reports on CEI's study of the Consumer Financial Protection Bureau's proposed rule on payday lending.
A new report Monday shows many Americans will be negatively effected by new regulations imposed on lending by the Consumer Financial Protection Bureau (CFPB).
The financial area most effected by these new rules is payday lending, according to the Competitive Enterprise Institute (CEI). Payday loans are short-term loans made to individuals through banks, lending businesses, and online stores. They usually carry a high interest rate and require the individual to write a post-dated check for the amount they wish to borrow.
“Federal regulators want more restrictions on payday loans, but that will hurt people who urgently need a short term loan but lack rainy-day savings or credit cards,” Harry B. Miller, author of the CEI report, tells The Daily Caller News Foundation.
In situations where consumers are in need of quick cash, payday loans can be a much more preferable option to either forgoing necessary goods and services or failing to meet other financial obligations.
Read the full article at The Daily Caller.