In an article titled “Six Problems the Consumer Financial Protection Bureau Should Tackle First” payday lending made the cut.
The problem w/ these fixes is that it puts people with good credit on the same plane with people with bad credit. Basically, it creates a much bigger problem than it solves.
Here is their solution:
Consumer advocates would like the CFPB to push for a rule that would limit the number of times a payday loan could be flipped into a new loan. After that, the lender would have to work out a payment plan that capped the loan’s final fees, or convert the loan into a typical installment loan with minimum monthly payments that could be made penalty-free.
Here’s the full list:
