President Obama talks concerning the economy and payday lending Thursday, at Lawson State Community university in Birmingham, Ala. (Picture: Jacquelyn Martin, AP)
WASHINGTON — President Obama pushed for stricter payday lending guidelines Thursday while he defended the us government’s customer security watchdog against Republican efforts to defund the agency.
“the concept is pretty wise practice: you should first make sure that the borrower can afford to pay it back,” Obama said at Lawson State Community College in Birmingham, Ala., on Thursday afternoon, according to an advance copy of his speech if you lend out money.
Obama’s message arrived while the customer Financial Protection Bureau outlined a proposition to split straight down on payday financing methods that end up in exactly what it calls “debt traps.”
“As People in america, we do not mind folks making a revenue,” Obama said. “But then you need to find a new business model if you’re making that profit by trapping hardworking Americans in a vicious cycle of debt. You’ll want to find a new means of doing business.”
Obama to cite lending that is payday, lawmaker says
The majority of Obama’s message in Birmingham observed the template of their present campaign for “middle-class economics.” Nevertheless the place additionally the timing had been deliberate: Birmingham ended up being your website of CFPB’s very first industry hearing on payday loans in 2012. Obama noted that we now have four times as numerous lenders that are payday Alabama as there are McDonald’s restaurants. Continue reading “Obama pushes lending that is payday in Alabama”