Catharine Andricos and Dailey Wilson
On October 26, 2018, the Bureau of customer Financial Protection issued a general public statement announcing it promises to issue proposed rules in January 2019 reconsidering its Payday, car Title, and Certain High-Cost Installment Loans rulemaking. A shift is suggested by this reconsideration when you look at the Bureau’s mindset towards short-term financing, and loan providers may become more hopeful about the future of the industry. But care continues to be wise, as current state task shows that the battle against payday financing is far from over, with states using aim at the industry through ballot initiatives, legislation, and lawyer basic actions.
Ballot Initiatives – Southern Dakota and Colorado
Within the past couple of years, the residents of two western states approved ballot measures capping the attention price on pay day loans at 36% per year. In November 2016, Southern Dakotans for Responsible Lending spearheaded a campaign to cap the attention prices on all consumer loans, including pay day loans.