Payday loan rules may not be tough enough

[4bucksagallon]

Source: CBS News

Consumer advocates widely agree that the federal government needs to rein in payday lending firms. Less certain is whether new rules proposed today by the Consumer Financial Protection Bureau will do the trick.

The main criticism of payday lenders is that they issue loans without first verifying that borrowers can afford to repay them, they trap people in an extended cycle of debt and they pile on fees and other charges.

The CFPB would address some of those problems by requiring lenders to determine upfront that consumers can repay a loan when it's due without having to borrow more money and that they can still meet their basic living expenses.

Read more: http://www.cbsnews.com/news/payday-loan-rules-may-not-be-tough-enough/

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Attention DWS.......Calling DWS..... Hello DWS..... Is anyone listening to the working man/woman?

[AntiBank]

1. This should be in GD, its opinion, not news

I agree with it and especially the DWS call out, but it shouldn't be in this section.

[JimDandy]

3. This is news! I have been waiting for this proposal to come out. It just did!

The Consumer Federation of America said the "ability to repay" standard proposed by the CFPB is an important step forward because it will help ensure that consumers can make loan payments without falling behind on housing, child care and other expenses. The advocacy group also praised the effort to deter payday firms from repeatedly trying to collect loan payments directly from a customer's bank account, noting that millions of borrowers get hit with overdraft and other fees.

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Pew also noted that payday firms have already shifted much of their business to offering high-cost installment loans, which are repayable over a longer period of time but which also commonly charge triple-digit interest. The CFPB rules would do nothing to protect borrowers from these loans, Bourke said.

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The draft payday rules could see significant revision. The CFPB will now put the proposal, which was unveiled Thursday in Kansas City, out for a 90-day public comment period. The bureau is expected to formally adopt regulations by early next year.

[Omaha Steve]

2. FIRE DWS! Donate to Democratic Underground for Tim Canova FL-23 here

DNC Chair Joins GOP Attack On Elizabeth Warren’s Agency: http://www.huffingtonpost.com/entry/debbie-wasserman-schultz-paylenders-cfpb_us_56d4ce38e4b03260bf77e8fc

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