July 5, 2016
One of the many ways that banks and finance companies, payday loans, have fostered more debt and hardships on many Americans has been challenged by President Obama and the Consumer Financial Protection Bureau, the agency that Sen. Elizabeth Warren (D-Mass) founded. Typically have rates of 390 percent and often higher have soaked the public in need of some short-term money during this time of national financial difficulty.
The agency will accept comments on the proposed rule until Sept. 14, 2016.
Those comments will then be examined and considered before the final rule is released.
Let us get behind this new rule and support it, putting a strong "dent" in the "octopus" of financialization.
Here's a statement from one of the payday lenders: Brace yourselves.
The APR typically ranges between 260% and 1825%. You might be alarmed to see rates this high, but remember that these loans are only short term, and therefore the interest is applied for only a fraction of the time you would associate with standard credit options.
Arn H. Specter, Philadelphia