Payday loans in TIME magazine

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:

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  • By The CFPB and Installment Lending on May 29, 2013 at 4:12 pm

    […] Loans. The trend of large payday lenders moving to installment products.  Lets be honest, payday loans have a huge target on their back.  An installment loan can be no different than a mortgage loan and it’s fundamentally better […]