The Terrible Truth About Payday Loans

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An article in the New York Times by Nicholas Confessore and Stacy Cowley on April 29, 2020 told how the Trump Administration’s Consumer Financial Protection Bureau (CFPB) manipulated the agency’s research program that would have reduced the interest rates charged by payday loan operations.

Under the chairmanship of Mick Mulvaney, the CFPB justified altering a 2017 rule that would have sharply curtailed high-interest payday loans to those without banking services who needed cash in a hurry.

The bottom line is that some of those workers wound up paying more in fees than the value of the original loan.

For those who don’t have to resort to payday loans, this might be of little interest, but to those caught up in this crushing situation it’s like being on a treadmill that has no end.
The relief that that 2017 rule would have offered would have made all the difference in the world to those doing a balancing act on that treadmill. But that’s gone thanks to Trump and Mulvaney.

Beau Weisman, Editor