By SYDNEY EMBER
The Consumer Financial Protection Bureau will soon release the first draft of federal regulations to govern a wide range of short-term loans made by the $46 billion payday loan industry, Jessica Silver-Greenberg reports in DealBook.
The rules are expected to address expensive credit backed by car titles and some installment loans that stretch longer than the traditional two-week payday loan, according to industry lawyers, consumer groups and government authorities briefed on the discussions.
“Behind that decision, the people said, is a stark acknowledgment of just how successfully lenders have adapted to keep offering high-cost products despite state laws meant to rein in the loans,” Ms. Silver-Greenberg writes. The regulations will likely set off a new round of lobbying from payday lenders.
Already, some payday lenders have begun aggressively lobbying a number of states, including Kentucky, Washington and New Mexico, to weaken state laws restricting expensive loans or to stop new caps before they gain ground. The lenders contend that their loans are the only option for millions of Americans.
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