Consumer Protection Bureau Aims to Roll Back Rules for Payday Lending

Re:Consumer Protection Bureau Aims to Roll Back Rules for Pa... by CydeWeys on Wednesday February 06, 2019 @05:37PM (#19100836)

> Arguably, the consumers that the CPB is protecting is those who are aware of the fees and conditions but still require payday loans, who would be excluded from consideration by the new rules [1], which do not change the interest rate requirements but exclude some customers from eligibility.

I'm not sure many such people exist. Surely the vast majority of payday loan companies' customers are not these kinds of people, but rather, people who are being taken advantage of.

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Re:Consumer Protection Bureau Aims to Roll Back Rules for Pa... by chris_va on Wednesday February 06, 2019 @05:52PM (#19100964)

"Also, the official, who spoke to journalists on condition of anonymity, said that if the rule had kicked in, some two-thirds of borrowers wouldn't qualify for a payday loan."

... pretty brutal. From the CFPB[1], 82% of loans are renewals, and ~50% are longer cycles of debt. So, naively, of the 66% of people no longer eligible, one might expect 75% (50%/66%) of those to be stuck in a debt cycle and 25% (16%/66%) to no longer have access to credit.

[1] https://files.consumerfinance.gov/f/201403_cfpb_report_payda...

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