Monthly Archives: June 2016

Reviews | Think there’s no good alternative to payday loans? Think again.

Placeholder while loading article actions Every week, In Theory takes a big idea in the news and explores it from different angles. This week we are talking about payday loans. Need a primer? Catch up here. Mike Calhoun is president of the Center for Responsible Lending. The rule proposed by …

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Limiting access to payday loans may do more harm than good

One of the few loan options available to the poor could soon evaporate if a new rule proposed on June 2 takes effect. The Consumer Financial Protection Bureau (CFPB) announced the rule in an effort to eliminate what he called “debt traps” caused by the US$38.5 billion payday loan market. …

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Payday loans target those with no money

Maybe it’s time to admit dad knew better. After talking to both sides in the battle over payday loan rules, I can’t help but return to my father’s regulatory regime. Two words dictated his approach to managing his finances: “Pay Cash”. No one, not even the Consumer Financial Protection Bureau, …

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Payday loans are often a last resort for the poor. That doesn’t mean they should be exploitative

Payday loans serve as a last resort for people with poor borrowing histories and little savings, carrying punishing interest rates of 300% or more on an annual basis – an order of magnitude more expensive than the most expensive credit card. And unsurprisingly, more than three-quarters of borrowers fail to …

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