Payday lenders, which had been scaled back by regulations implemented during the Obama administration, are back in business. This is thanks to a new ruling by the same agency that had originally applied those regulations, which is now rolling some or all of them back.
The Consumer Financial Protection Bureau has quite controversially reversed course under its new leadership. The new guidance would allow payday lenders more leeway to return to the kinds of activities that originally got them in trouble – making multiple loans to the same person in a short window of time, and making loans without verifying a customer’s ability to pay in advance.
This is one example of how the CFPB during the Trump administration is taking a more business-friendly approach, despite the fact that the agency was originally designed to help consumers (as the name suggests). Read the full article to learn more about these new rules.