U.S. releases rule to end 'debt trap' of payday loans

[Common]

Im all for limiting these lenders and the GOP is dead wrong if they try to block it.

The people that use these payday loans are those that make the least min wage workers, these loans do not help them it buries them in debt that they can never get out of. They dont earn enough to pay the loan the interest and survive

The U.S. consumer financial watchdog on Thursday released its final rule restricting payday lenders’ ability to profit from high-interest loans, but the Republican-led U.S. Congress is expected to try to kill the regulation aimed at keeping borrowers from falling into “debt traps.” The Consumer Financial Protection Bureau rule would give lenders more responsibility in ensuring borrowers can repay the loans and will not be trapped in a cycle where they must take out more debt to pay off outstanding loans and fees. The short-term, small-amount loans, which are not collateralized and historically repaid by a borrower’s next paycheck, are popular with people with low incomes and are frequently used to cover emergency expenses.

http://www.reuters.com/article/us-usa-consumer-paydayloans/u-s-releases-rule-to-end-debt-trap-of-payday-loans-idUSKBN1CA24K

[Adelaide]

It makes sense to get rid of them. I used it once for a legitimate purpose when I was younger, and it sucked to have to pay the interest. A lot of people have to keep changing the length, which increases the amount, because they end up not being able to afford it when they get their cheque from work.

[exotix]

I'm finding this issue a bit ironic ... Trump since his inauguration has pretty much claimed that he has created more jobs and expanded GDP growth to levels *never seen before* in U.S. History ...

[Tahuyaman]

I'm finding this issue a bit ironic ... Trump since his inauguration has pretty much claimed that he has created more jobs and expanded GDP growth to levels *never seen before* in U.S. History ...

How does that relate to this specific issue?

[Common]

I'm finding this issue a bit ironic ... Trump since his inauguration has pretty much claimed that he has created more jobs and expanded GDP growth to levels *never seen before* in U.S. History ...
Explain what this post has to do with the thread

[Common]

How does that relate to this specific issue?
Its a new approach at trolling which wont work long term

[exotix]

How does that relate to this specific issue?
Explain what this post has to do with the thread

Its a new approach at trolling which wont work long termEasy ... when the Republican-led U.S. Congress kills the regulation aimed at keeping borrowers from falling into “debt traps" ... poor people will spend their the rest of their lives in servitude and usury ...



The U.S. consumer financial watchdog on Thursday released its final rule restricting payday lenders’ ability to profit from high-interest loans, but the Republican-led U.S. Congress is expected to try to kill the regulation aimed at keeping borrowers from falling into “debt traps.”

[Green Arrow]

Good move. Won't be at all surprised if the GOP blocks it.

[Tahuyaman]

No one is forcing people to utilize these lending operations.

Then should government force major institutions to give low interest loans to people who they know can't afford them? Wait a minute, we did that once. It wasn't pretty.

[Captain Obvious]

No one is forcing people to utilize these lending operations.

Then should government force major institutions to give low interest loans to people who they know can't afford them? Wait a minute, we did that once. It wasn't pretty.

People are mindless sheep, they need protection from themselves, otherwise they will pay a 300% or whatever interest rate for their beer and cigarettes.

So how can democracy be considered a success when these same people vote?

[Tahuyaman]

People are mindless sheep, they need protection from themselves, otherwise they will pay a 300% or whatever interest rate for their beer and cigarettes.

So how can democracy be considered a success when these same people vote?


It does seem that many people need to be protected from themselves.


I wonder if some of these people ever considered doing a better job at cutting their needless or non-essential costs and living within their means until their financial situation improve? Is that too much to expect from people?

[Kalkin]

Payday loans are just fine by me. If someone wants money right now and is willing to pay the premium to get it, why is it anyone's business besides the lender and the borrower?

[Ethereal]

Big banks using the regulatory power of the state to squeeze out their smaller competitors. Naturally, they cannot admit this, so they package it as "consumer protection".

[Tahuyaman]

It's no wonder that so many people can't seem to care of themself and their own needs. Government has taken the responsibility of making sure people are free from the consequenses of making poor decisions of failing to manage their own finances.

That is inexplicable because government makes so many poor decisions and has no idea how to manage their own finances.

[Newpublius]

Payday loans are just fine by me. If someone wants money right now and is willing to pay the premium to get it, why is it anyone's business besides the lender and the borrower?

Precisely, given also, that simply making it illegal Doesn't make loansharking go away.

[Common Sense]

Precisely, given also, that simply making it illegal Doesn't make loansharking go away.
This seems to be the theme today. Why have any laws if none are 100% effective all the time?

[Ethereal]

Why have any laws if none are 100% effective all the time?
To mete out justice in a systematic and organized fashion.

[Newpublius]

This seems to be the theme today. Why have any laws if none are 100% effective all the time?

Because in your incessant need to meddle in the affairs of other people you make things worse for THEM and the rest of us.

[Common Sense]

Because in your incessant need to meddle in the affairs of other people you make things worse for THEM and the rest of us.

What?

[Kalkin]

It's no wonder that so many people can't seem to care of themself and their own needs. Government has taken the responsibility of making sure people are free from the consequenses of making poor decisions of failing to manage their own finances.
That is inexplicable because government makes so many poor decisions and has no idea how to manage their own finances.
Indeed. People who support this kind of government interference must have some kind of Stockholme Syndrome. The government is not your daddy.

[Kalkin]

This seems to be the theme today. Why have any laws if none are 100% effective all the time?

It's not a question of how effective this law would be, it's a question of whether or not adults can decide for themselves if the high interest is worth having the money available right now.

[Captain Obvious]

Payday loans are just fine by me. If someone wants money right now and is willing to pay the premium to get it, why is it anyone's business besides the lender and the borrower?

I generally agree with that but consider that these people are most likely welfare bums. Your tax dollars lining loanshark pockets.

[Newpublius]

What?

They borrow on even worse terms, backed by their knee caps, and we fruitlessly attempt to enforce with thousands of six figure vice cops who retire and sit on their ass after 20 years of service. Many of whom will have screwed the s-h-i-t out of 1000 w-h-o-r-e-r-s just before arresting them.

[Common Sense]

:shocked:

[donttread]

Im all for limiting these lenders and the GOP is dead wrong if they try to block it.

The people that use these payday loans are those that make the least min wage workers, these loans do not help them it buries them in debt that they can never get out of. They dont earn enough to pay the loan the interest and survive

The U.S. consumer financial watchdog on Thursday released its final rule restricting payday lenders’ ability to profit from high-interest loans, but the Republican-led U.S. Congress is expected to try to kill the regulation aimed at keeping borrowers from falling into “debt traps.” The Consumer Financial Protection Bureau rule would give lenders more responsibility in ensuring borrowers can repay the loans and will not be trapped in a cycle where they must take out more debt to pay off outstanding loans and fees. The short-term, small-amount loans, which are not collateralized and historically repaid by a borrower’s next paycheck, are popular with people with low incomes and are frequently used to cover emergency expenses.

http://www.reuters.com/article/us-usa-consumer-paydayloans/u-s-releases-rule-to-end-debt-trap-of-payday-loans-idUSKBN1CA24K


Just bring back usery limitations all the way around. I'm sure there are other abusive lending practices out there besides payday loans.

[Tahuyaman]

I generally agree with that but consider that these people are most likely welfare bums. Your tax dollars lining loanshark pockets.


I dont know if that's true. I personally have known many working people who utilized these services on occasion.

[Kalkin]

I generally agree with that but consider that these people are most likely welfare bums. Your tax dollars lining loanshark pockets.

I'd prefer to kick them off welfare before I'd want government stepping in on private contracts between free adults.

[donttread]

It's not a question of how effective this law would be, it's a question of whether or not adults can decide for themselves if the high interest is worth having the money available right now.

How would that differ from price gouging?

[Kalkin]

How would that differ from price gouging?
If adults want to overpay for the convenience of having something at a given time or place, I fully support their right to do so. I would be open to government intervention in times of crisis regarding food prices, though. I'm not totally inflexible. Generally, though, let free adults make stupid decisions if they want to.

[AZ Jim]

The simple way to control usury is cap rates for all lenders.

[Kalkin]

The simple way to control usury is cap rates for all lenders.
That wouldn't stop me.