Mayday for Payday? Tall Price Installment Loans

The customer Financial Protection Bureau (CFPB) today proposed guidelines (Payday, car Title, and Certain High-Cost Installment Loans) pursuant to its authority under 12 U.S.C. §§1022, 1024, 1031, and 1032 (Dodd-Frank) which will severely limit what is generally speaking referred to as the “payday lending” industry (Proposed guidelines).

The Proposed Rules merit careful review by all economic solutions providers; along with real “payday lenders,” they create substantial danger for banking institutions as well as other conventional banking institutions offering short-term or high-interest loan products—and danger making such credit effortlessly unavailable available on the market.