A Consumer Bill Gives Exemption on Payday Loans

This article focuses on legislation being proposed in an effort of "bipartisanship" that would call for more regulation on nonbank fincial companies such as payday lenders. However, Senators such as the Senate Banking Committee's chairman Christopher Dodd and Republican Senator Bob Corker (Tennessee) have been advocating to remove a provision that allows government to "crack down" on payday lenders. Consumer advocates say the proposal would leave the agency unable to enforce their policies, this may be caused by a failure of markets because of corruption. Because the companies that this policy would effect are the same ones that have given substantial contributions to both Dodd and Corker.