Yesterday, the CFPB formally rescinded a plan to impose new limits on payday lending; the proposed changes were a signature effort of the CFPB from the Obama administration and would have limited the number of loans a borrower could obtain and more importantly would have required lenders to verify that the borrowers had the capacity to repay the loan; the payday lending industry lobbied hard against these proposals and have ultimately been successful; Kathleen Kraninger, CFPB director, defended the decision by saying the proposals were based on insufficient evidence to justify the harm it would have caused lenders; some minor provisions were left in place such as preventing lenders from trying to repeatedly take funds from a borrower’s overdrawn bank account. The New York Times.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.