Month: June 2016

Limiting access to payday loans can do more harm than good

One of the few loan options available to the poor may soon evaporate if a new rule proposed on June 2 takes effect. The Consumer Financial Protection Bureau (CFPB) announced the rule with the aim of eliminating what he called the “debt traps” caused by the US $ 38.5 billion payday loan market. But will […]

Payday loans target those without cash

Maybe it’s time to admit daddy knew best. After talking to both sides about the payday loan rules battle, I can’t help but revert to my father’s regulatory regime. Two words dictated his approach to managing his finances: “Pay cash”. No one, not even the Consumer Financial Protection Bureau, will put in place such a […]

Payday loans are often a last resort for the poor. That doesn’t mean they should be exploiters

Payday loans serve as a last resort for people with poor borrowing history and little savings, with punitive interest rates of 300% or more on an annual basis – an order of magnitude greater than the most expensive credit card. And as might be expected, more than three-quarters of borrowers fail to repay their payday […]

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