http://www.sanduskyregister.com/news/government/7799391
Pay-day loan companies have employed tactics like posing as a
credit-repair organization, posing as a mortgage lender, using a bank as a
front, using a Native American tribe as a front, offering cash for free to hook
borrowers, lengthening loan terms when rules targeted short-term loans, and larding
loans with useless insurance in order to make a large profit off of everyday consumers. These practices are usually used against the poorest citizens in the U.S. because they are the ones who often need cash on hand at quick notice. The Consumer Financial Protection Bureau (CFPB),
created by the 2010 financial reform bill, has the authority to regulate
high-cost loans on the federal level for the first time. And on Thursday
morning, the agency unveiled a first draft of new rules that would sharply
reduce the number of payday loans made in the country.
1 comment:
As if Native Americans haven't had enough trouble. I have only heard negative things about pay-day loans, but even then not a lot of information. Hopefully these rules work out for the best.
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