Released: October 30, 2023

Payday lenders aim to evade federal probes

Source: Tony Romm, Washington Post (Paid Registration)

Powerful financial firms that offer high-cost, short-term loans to poor Americans have blocked at least five federal investigations into their business practices since the start of last year, part of a broad and aggressive campaign by payday lenders to neuter or eliminate their chief watchdog agency--the Consumer Financial Protection Bureau.

At the heart of the standoff are short-term lenders that offer a wide variety of loans to low-income Americans with poor credit, urgent financial needs and few other places to turn for help. The loans often feature unforgiving repayment timelines and annual interest rates well into the triple digits, leaving some of the neediest borrowers facing sky-high bills they cannot repay.

 

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