Federal Push To Scale Back Payday Loan Regulations


THE LOOP WITH NEW REGULATIONS THAT SOME FEAR WILL EXPLOIT THE DISADVANTAGED. Reporter: GOOD EVENING. STORES LIKE THE ONE BEHIND ME IT’S ADVERTISED AS A QUICK WAY TO GET CASH. FOR SOME USERS IT CAN BE AN EXPENSIVE CYCLE OF DEBT AND NOW THERE’S A PUSH AT THE FEDERAL LEVEL TO SCALE BACK REGULATION. WE FEEL WRONG. Reporter: LAURA AND HER HUSBAND MARCO NEEDED CASH SO THEY TOOK A PAYDAY LOAN FROM ONE OF THE DOZENS OF STORES AROUND CHICAGO AND ARE STILL PAYING. THAT WAS THREE YEARS AGO. WE DON’T HAVE ANOTHER WAY OR ANOTHER OPTION. Reporter: YOU HAD TO TAKE THE LONG? YES, TAKE IT AND PAY WHAT WE HAVE TO PAY. Reporter: PAYDAY LOANS TYPICALLY A FEW HUNDRED DOLLARS. THE PERSON BORROWING AGREES TO PAY THE CASH BACK BUT ANNUAL PERCENTAGE INTEREST RATES AS HIGH AS 400%. IT’S DUE BY THE NEXT PAYCHECK. MOST OF THE PREDATORY LENDERS IN CHICAGO HAVE SET UP SHOP PRIMARILY IN BLACK AND HISPANIC COMMUNITIES. Reporter: THE RESTORATION PROJECT CEO FEELS A NEW CHANGE BY THE FEDERAL CONSUMER FINANCIAL PROTECTION BUREAU WILL HAVE A CRIPPLING AND EXPENSIVE IMPACT ON THOSE WHO DESPERATELY RELY ON PAYDAY LOANS. THEY WON’T EVEN CHECK ON THEIR ABILITY TO PAY THEY ARE JUST GOING TO MAKE THESE LOANS AND THEN TRAP THEM. Reporter: THEY WANT TO DO AWAY WITH THE 2017 RULE REQUIRING PAY DAY LENDERS TO VERIFY THE PERSON BORROWING HAS THE MEANS TO PAY IT BACK. THEY SAY THEY ARE CONCERNED THESE PROVISIONS WOULD REDUCE ACCESS TO CREDIT. WE WILL REPEAT THE THINGS THAT HAPPENED ALMOST A DECADE AGO. PAIN AND THEN WE ARE STILL PAYING. Reporter: YOU CAN STILL HAVE YOUR VOICE HEARD, IT’S NOT TOO LATE.

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