Wednesday, September 7, 2016

What’s Next if Payday Loans Go Away?

Tara Jeffries from Morning Consult wrote about the payday loans regulation after her interview with William Michael Cunningham from Creative Investment Research, Inc.

"As the Consumer Financial Protection Bureau prepares to finalize proposed rules cracking down on payday lenders, critics and proponents alike are speculating on what would fill the need for short-term, small-dollar loans. The proposed Consumer Financial Protection Bureau regulation aims to prevent borrowers from being stifled by high interest rates and monthly payments. Stronger regulation of payday lending could increase the use of financial technology such as online marketplace lending, said William Michael Cunningham. He also suggested that CFPB should take some of that fine money that they’re getting from these financial institutions and create a fund to create responsible depository institutions serving some of these communities. Dennis Shaul, chief executive of the Community Financial Services Association of America, took aim Tuesday at the CFPB, saying it “buried and ignored” a slate of positive testimonials about payday loans. 

Click on https://morningconsult.com/2016/09/07/whats-next-payday-loans-go-away/ to read the full story.

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