After long delay, brand brand new agency uses up part overseeing payday advances

After long delay, brand brand new agency uses up part overseeing payday advances

Through the 2008 campaign that is presidential Barack Obama promised to “cap outlandish rates of interest on pay day loans also to enhance disclosure” regarding the short-term, high-interest loans. After several years of partisan wrangling, the administration has basically accomplished its objective.

First, some back ground. “Payday loans are small-dollar, short-term, short term loans that borrowers vow to repay out of their next paycheck or regular earnings repayment,” in line with the Federal Deposit Insurance Corporation. “Payday loans are often coming in at a fixed-dollar cost. [Read more…]