Earlier this month, the Consumer Financial Protection Bureau proposed rules on the massive payday loan industry. CFPB wants to force lenders to test borrowers ability to actually pay back loans, and limit re-borrowing, which creates a spiral of debt and exorbitant fees.
Both supporters and critics of the rule agree that it will probably force many payday lenders to close, ending 400 percent annual interest rates and immoral price-gouging. But while lenders might go away, the need for small-dollar loans wont.
Consider this incredible and depressing statistic: According to a Federal Reserve survey, 47 percent of Americans would struggle to come up with $400 in the …
Read the full article at: http://www.salon.com/2016/06/22/hope_for_those_in_debt_can_a_non_profit_help_put_predatory_payday_lenders_out_of_business/