Federal Agency Proposes Rules to Crack Down on Payday Loans

Mina Kim

Jun 3, 2016 at

Save Article

Failed to save article

Please try again

(Photo: Dan Kitwood/Getty Images)

The Consumer Financial Protection Bureau proposed new regulations Thursday to protect consumers from payday, auto title and other high-cost loans. The so-called “debt trap” loans can carry annual interest rates of over 300 percent, in addition to other fees and penalties. The new rules would require lenders to verify a borrower’s ability to repay and prohibit repeated short-term borrowing. Critics say the rules would hurt consumers who need payday loans to manage budget shortfalls. We discuss the rules and their potential impact on California consumers.

A Video from the Consumer Financial Protection Bureau

More Coverage

Sarah Silverman Skit Helped Ban Payday Lenders in Menlo Park

Guests:

Nick Bourke, director, Small-Dollar Loans Project, Pew Charitable Trust

Liana Molina, director of community engagement, California Reinvestment Coalition

Gary Rivlin, journalist; author of "Broke, USA: From Pawnshops to Poverty, Inc. How the Working Poor Became Big Business"

Dennis Shaul, chief executive officer, Community Financial Services Association of America

Sponsored

lower waypoint

next waypoint

NPR's Sarah McCammon on Leaving the Evangelical Church KQED Youth Takeover: We’re Getting a WNBA Team Rainn Wilson from ‘The Office’ on Why We Need a Spiritual Revolution Forum From the Archives: Remembering Glide Memorial's Cecil Williams Erik Aadahl on the Power of Sound in Film KQED Youth Takeover: How Can San Jose Schools Create Safer Campuses?Supreme Court Hears Oral Arguments in Major Homelessness Case Percival Everett’s Novel “James” Recenters the Story of Huck Finn Have We Entered Into a New Cold War Era?KQED Youth Takeover: How Social Media is Changing Political Advertising