{"id":1003765,"date":"2019-02-13T10:38:09","date_gmt":"2019-02-13T14:38:09","guid":{"rendered":"https:\/\/democrats.org\/?p=1003765"},"modified":"2024-05-23T20:09:38","modified_gmt":"2024-05-23T20:09:38","slug":"new-york-times-editorial-trumps-payback-for-payday-lenders","status":"publish","type":"post","link":"https:\/\/democrats.org\/news\/new-york-times-editorial-trumps-payback-for-payday-lenders\/","title":{"rendered":"New York Times Editorial: Trump\u2019s Payback for Payday Lenders"},"content":{"rendered":"

Key Takeaway: \u201cBut the Trump administration established from the start that it was more interested in rewarding the lending industry than protecting borrowers. Mick Mulvaney, as the bureau\u2019s acting director, sided with the lenders last year when they went to court to block the regulations. The bureau\u2019s new director, Kathleen Kraninger, has now proposed hollowing out nearly all of the meaningful requirements in the rules \u2014 including the ability-to-pay requirement.\u201d<\/p>\n

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New York Times Editorial<\/a>: Trump\u2019s Payback for Payday Lenders<\/p>\n

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By The Editorial Board<\/p>\n

 <\/p>\n

The federal Consumer Financial Protection Bureau betrayed financially vulnerable Americans last week by proposing to gut rules conceived during the Obama era that shield borrowers from predatory loans carrying interest rates of 400 percent or more. The bureau\u2019s proposal is based on a legally dubious rationale that will surely be challenged in federal court. The agency\u2019s abdication of its mandate to protect consumers underscores the need for state usury laws, which have passed in 16 states and offer the surest path to curtailing debt-trap lending.<\/p>\n

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Payday lenders promote \u201ceasy\u201d loans for workers who run short of cash between paychecks and who typically promise to repay the debt within two weeks. But voluminous data collected by the consumer protection bureau showed that the industry\u2019s business model \u2014 in which a $500 loan could cost a borrower $75 or more in interest just two weeks later \u2014 was built on the presumption that customers would be unable to pay at the appointed time and would be forced to run up the tab by borrowing again.<\/p>\n

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A 2014 bureau study of 12 million similar loans found that over 60 percent went to borrowers who took out seven or more loans in a row. In fact, a majority of loans went to people who renewed so many times that they ended up paying more in fees than the amount of money they originally borrowed. Among those trapped in this debilitating cycle were many people scrimping by on disability income.<\/p>\n

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(MORE<\/a>)<\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Key Takeaway: \u201cBut the Trump administration established from the start that it was more interested in rewarding the lending industry than protecting borrowers. Mick Mulvaney, as the bureau\u2019s acting director, sided with the lenders last year when they went to court to block the regulations. The bureau\u2019s new director, Kathleen Kraninger, has now proposed hollowing […]<\/p>\n","protected":false},"author":263,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1003765","post","type-post","status-publish","format-standard","hentry","category-press-release"],"acf":[],"yoast_head":"\nNew York Times Editorial: Trump\u2019s Payback for Payday Lenders - Democrats<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/democrats.org\/news\/new-york-times-editorial-trumps-payback-for-payday-lenders\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:site_name\" content=\"Democrats\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-13T14:38:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-23T20:09:38+00:00\" \/>\n<meta name=\"author\" content=\"Claire DePree\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Claire DePree\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/democrats.org\/news\/new-york-times-editorial-trumps-payback-for-payday-lenders\/\",\"url\":\"https:\/\/democrats.org\/news\/new-york-times-editorial-trumps-payback-for-payday-lenders\/\",\"name\":\"New York Times Editorial: Trump\u2019s Payback for Payday Lenders - 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