Federal Agency Proposes Rules to Crack Down on Payday Loans

at 9:00 AM
 (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

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

Sponsored

Volume
KQED Live
Live Stream
Log In ToPledge-Free Stream
LATEST NEWSCAST
KQED
NPR
Live Stream information currently unavailable.
Share
LATEST NEWSCAST
KQED
NPR
KQED Live

Live Stream

Live Stream information currently unavailable.