2 Payday Lending and State Regulation

2 Payday Lending and State Regulation

Payday lending is widespread. FDIC (2013) estimates that 4.7% of most U.S. households have at a while utilized lending that is payday while Pew Charitable Trusts (2012) places the figure at 5.5per cent of U.S. adults. In 2005, payday storefronts outnumbered McDonald’s and Starbucks areas combined (Graves and Peterson, 2008). Lenders stretched $40 billion in payday credit this year, generating profits of $7.4 billion (Stephens Inc., 2011).

Up to now the government has not directly regulated payday lending (save via basic statutes for instance the Truth in Lending Act while the Military Lending Act), though this could change given that the buyer Financial Protection Bureau (CFPB) is provided rulemaking authority on the industry. Traditionally, payday financing legislation happens to be kept into the states. Weiterlesen