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Planned consumer protection rule against payday lenders barred by feds

Wednesday, March 6, 2019
Riley Bunch | Idaho Press
Ellen Harnick

A federal rule that would have provided an extra level of consumer protection against payday lending practices has been proposed to be rescinded on the basis that it would reduce access to short-term loans for consumers.

Idaho cities in the past have attempted to protect citizens from payday loans that often trap consumers with drastically high interest rates. Idahoans paid almost $31 million in overdraft bank fees for payday loans and more than $65 million in fees for title loans in 2017, said Ellen Harnick, head of the Center for Responsible Lending's western office in Oakland.