Dallas Morning News: Maybe Washington’s Watchdog Can Fix Payday Loans
If Texas won’t protect the poor from payday loans, how about the feds?
Last month, a federal consumer agency cracked down on Fort Worth-based Cash America, securing a $19 million settlement that includes a $5 million fine. The case revealed serious violations, including robo-signing loans, overcharging military families and shredding documents after the investigation began.
For the payday loan industry, it was the first shot from the new sheriff on the beat, the controversial Consumer Financial Protection Bureau. Advocates are pushing for more sweeping changes that would rock the business.
“The next step is to protect the general population from harm, and the bureau has the power to do that,” said Nick Bourke, director of the Small-Dollar Loans Research Project at The Pew Charitable Trusts.
More than 2 million Texans take small-dollar loans annually, Pew estimates. So much is riding on the feds flexing some muscle.
Read the full article at dallasnews.com.
- Safe Small-Dollar Loans Research Project