Inside Sources cited Policy Analyst Daniel Press on the CFPB and payday loans:
When drafting the original payday lending rule, the CFPB believed these underwriting requirements helped prevent consumers from falling into a long-term debt trap. But the Competitive Enterprise Institute (CEI), thinks the underwriting requirements do just the opposite.
Consumers who take out multiple payday loans a year are often dealing with very difficult financial situations, wrote policy analyst Daniel Press, and procuring quick cash loans can help them get on their feet. A federal cap on how many loans they can get is essentially telling consumers how to manage their own finances.
“The newly proposed payday loan rule is a crucial fix to a regulation that threatened access to credit for millions of Americans who need to cover emergency expenses between paycheck,” Press told InsideSources in an email. “The action by the Bureau today preserves consumer choice and access to credit, allowing individuals — not Washington bureaucrats — to decide what is best for themselves.”