New regulations on payday loans were set to take effect later this year, but the Trump administration has moved to delay, and likely scrap most of the meaningful requirements. The New York Times reports that Kathleen Kraninger, the new director of the Consumer Protection Bureau, has proposed eliminating nearly all the regulation’s substantive requirements, including the “ability to repay” mandate. Sadly, this reversal in the bureau’s position, puts the interests of the payday loan industry ahead of those of consumers.
Many consumer advocates believe that payday loan operations are wantonly predatory. They deliberately target vulnerable consumers who need some extra cash to make ends meet between paychecks. According to the consumer bureau’s own data, half of all payday loans are repeating loans to cover the previously unpaid loan and represent cycles that stretch to at least 10 consecutive loans! These consumers are in a spiraling debt situation that is hard to break out of.
If you are struggling with unmanageable debt, including payday loan obligations, call attorney Chris Bush, at (619) 295-3322. He is an experienced bankruptcy attorney and consumer debt advocate. He’ll help you find the best solution to your debt burden and get back you on a track to financial freedom.