Trump makes predatory lending great again

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John Micek | Casper Star Tribune
Here’s another reminder that, when it comes to the Trump administration, it’s more important to watch what the White House does rather than what it says. The payday lending industry scored a huge win when the U.S. Consumer Financial Protection Bureau proposed to weaken Obama-administration rules governing an industry that makes its money by exploiting people in desperate financial straits. That’s pretty much the exact opposite of what the agency was created to do. But, hey, this is Donald Trump’s Washington.

Lax payday loan regulations could hit older Americans especially hard

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Alessandra Malito | Market Watch
The Consumer Financial Protection Bureau said its proposal to roll back regulation for payday lenders will give consumers more access to credit — but as far as senior citizens are concerned, that may not be a good thing. The Obama-era regulation, which was finalized in 2017 and was to be implemented in August of this year, required payday lenders to determine if the borrower could afford loan payments and still meet basic living expenses. The government agency said this week it plans to rescind its underwriting provisions and delay the rule’s compliance date to November 2020. Kathy Kraninger

Payday Rule Purge Axes New CFPB Chief's Benefit Of The Doubt From Consumer Advocates

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Ted Knutson | Forbes
The benefit of the doubt new Consumer Financial Protection Bureau Director Kathy Kraninger received from some consumer advocates evaporated this week when she indicated she would ax payday lending standards developed under Obama CFPB Chief Richard Cordray. On the day last December Kraninger was confirmed by the Senate Cordray appeared to ask his followers not to oppose her from the get-go with a tweet: “Like me, she had not run an agency before.” Two weeks later, came a tweet pat on the back: “A very reasonable and practical decision by the new CFPB director to scrap most aspects of the costly

Thanks to Trump, Payday Lenders Will Keep on Merrily Bilking the Poor

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KALENA THOMHAVE | The American Prospect
The cycle of the payday loan is a well-known horror story. A person needs money, and they need it fast, so they visit a payday lender with names like EZ Cash or Cash Express. They get their money on the spot. The trouble comes later, when it’s time to repay the loan. Most borrowers default on that small-dollar loan, which is how EZ Cash profits—as the loan is renewed or rolled over and the fees rack up. One of the last regulations published under President Obama’s director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, was a 2017 rule that would have curbed the most

CFPB reveals plan to roll back payday lending rules

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Kelly Anne Smith | Bankrate
The Consumer Financial Protection Bureau announced it plans to roll back its Payday Lending Rule aimed at protecting consumers from the high-interest short-term loans. The proposed changes would be one of the first major policy implementations made by new director Kathy Kraninger. Established in 2018, the Payday Lending ruleaimed to protect consumers from bad lending practices and repayment abuse. The rollback of some of its provisions, to take effect in November 2020, have consumer advocates warning of a major setback to consumer protections.

Trump Wants to Give Loan Sharks Easier Access to the Poor

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Bess Levin | Vanity Fair
In 2016, Donald Trump slithered into the White House by pitching himself as the guy who would save the working class. That pitch, obviously, turned to be a classic Trump scam, given that the former real-estate developer’s “accomplishments” in the past two years have included passing a giant tax cut that disproportionately benefits corporations and the uber-rich; sabotaging the Affordable Care Act; weakening labor rules; and, most recently, forcing 800,000 federal workers to go without pay for more than a month while trotting out his own personal Mr. Burns to tell said workers to “ take out a

El Gobierno busca eliminar protecciones en payday loans

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ANA B. NIETO | La Opinion
La Oficina de Protección al Consumidor Financiero (CFPB) ha propuesto eliminar la obligatoriedad de que los prestamistas verifiquen la capacidad de un cliente para devolver un crédito de tipo payday (préstamo del día de pago) y contra los títulos de propiedad de carros (car title lending). El CFPB, bajo la dirección de Kathy Kraninger, cree que no hay “pruebas suficientes ni apoyo legal para las provisiones de seguro de riesgo obligatorio” que, sin embargo, son estándares en otros préstamos. Estas provisiones se incorporaron a la regulación final de 2017 relativa a este tipo préstamos de bajas

Consumer bureau proposes scrapping borrower safeguards from payday loan rule

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Sylvan Lane | The Hill
The Consumer Financial Protection Bureau (CFPB) on Wednesday proposed striking certain borrower safeguards from a 2017 regulation on short-term, high-interest loans. The bureau on Wednesday kicked off a proposal to loosen the bureau’s rule on “payday” loans, a measure meant to protect vulnerable consumers from bottomless debt.

Financial watchdog set to dump most of its payday lending rules

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Ken Sweet | The Associated Press
NEW YORK — The nation’s federal financial watchdog said Wednesday that it plans to abolish most of its critical consumer protections governing payday lenders. The move is a major win for the payday lending industry, which argued the government’s regulations could kill off a large chunk of its business. It’s also a big loss for consumer groups, who say payday lenders exploit the poor and disadvantaged with loans that have annual interest rates as much as 400 percent.