The Consumer Financial Protection Bureau is proposing changes to regulations that protect borrowers from being trapped in long-term debt in a major win for the payday lending industry which gives quick loans at exorbitant interest rates. Ken Sweet, Associated Press’ company reporter, joins Hari Sreenivasan for lots more.
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Payday financing. It is an industry that is enormous costs exorbitant interest levels for fast loans — often to people who have woeful credit reviews. A week ago, the customer Financial Protection Bureau relocated to abolish a number of the laws designed to protect borrowers. We talked with Associated Press company reporter Ken Sweet about payday financing along with his reporting on feasible changes to customer security laws.
The key crucial an element of the guidelines that’s being rolled back was basically called the ‘ability to settle’ guidelines that the buyer Financial Protection Bureau rolled down. Essentially, it stated that if you should be a payday lender you needed to find out if the consumer who was simply getting into your shop could in fact repay the mortgage which you had been providing in their mind, which sounds actually basic but that has been the key element of that loan.