Government Crafts New Payday Lending Regulations
Troubled by consumer complaints and loopholes in state laws, the federal government is crafting new rules to protect borrowers of payday loans.
The Consumer Financial Protection Bureau is considering placing caps on the number of times a borrower can take a payday loan and requiring lenders to do credit checks. They also want to encourage states or lenders to lower interest rates on loans.
Host Frank Stasio talks with Diane Standaert, director of state policy at the Center for Responsible Lending, about the history and future of payday loans.