In the News: New Rules To Ban Payday Lending ‘Debt Traps’
Last week, the Consumer Financial Protection Bureau proposed new regulations affecting payday loans. The CFPB argues that these loans are set up in a way that makes it very difficult for lenders to repay them, so people end up borrowing more and more and ultimately pay far more in fees and interest than they borrowed.
As NPR’s Scott Horsley explains
Under the proposed rule, so-called “payday,” “auto-title” and other short-term lenders would be required to determine that people they loan money to can make the payments and fees when they come due and still meet basic living expenses and major financial obligations.
Mike Petrilli has argued that there are some low-quality private and charter schools that prey on low-income families in the way that payday lenders do, and that these schools should also be regulated.
In “The Three Tribes of the School Choice Movement,” Petrilli writes that these low-quality schools present a tough case for school choice “purists” who resist regulation of schools of choice.
– Education Next