Consumer bureau may go after payday loans

Sally Herships Jan 7, 2015
HTML EMBED:
COPY

Consumer bureau may go after payday loans

Sally Herships Jan 7, 2015
HTML EMBED:
COPY

Rules for payday loans vary state by state, and to date, there are no federal regulations overseeing the loans other than for service members in the military.

But now the Consumer Financial Protection Bureau says the industry needs reform and is looking at implementing what would be the first federal regulations. 

Payday lenders say they serve the “under-banked,” but few other products subject borrowers to such high interest rates. Critics charge that the industry offers predatory loans and targets the poor. So why have the loans been largely unregulated so far, and if regulations are doable, what might a regulated payday loan market look like?

Click the media player above to hear more.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.