Federal legislation of payday advances is a victory for states’ liberties

Why the us government must intervene to limit predatory lending

Back in 2014, through the very first period of their hit HBO show “Last Week Tonight,” John Oliver took in the payday loan industry. Boggled by loans that carried as much as a 1,900 percentage that is annual (APR), Oliver offered up a revised form of the “Lion King” theme track. “It’s the circle of debt!” he sang. “And it screws us all.” Oliver explained that the outrages of this pay day loan industry couldn’t be stopped because “they are extremely proficient at avoiding regulation.”

Any longer. The customer Financial Protection Bureau (CFPB), the agency faced with implementing and enforcing federal consumer law, simply revealed a unique rule establishing, for the first time, consistent nationwide requirements for pay day loans and comparable types of credit. (more…)