Washington, D.C. — Even as payday lenders are increasingly targeting young people with predatory loans, the Trump administration is seeking to end rules that protect borrowers from outrageous interest rates, according to a new column from the Center for American Progress.
With high interest rates on loans that average at least 300 percent or more, the payday lending model often targets communities that are disproportionately minority or low income. Payday lenders are also increasingly advertising to young people—the most likely demographic to use the latest smartphone apps that make it even easier to get short-term loans.
Earlier this year, the Consumer Financial Protection Bureau, led by a Trump appointee, proposed an end to rules that protect borrowers from loans with interest rates of 400 percent or more. Additionally, some of the top representatives from the payday lending industry reportedly stated that donating to President Donald Trump is the best way to gain influence and avoid regulations.
Reducing payday lenders’ influence over politicians and policymaking is the best way to ensure that young people and other vulnerable populations are not harmed by predatory borrowing practices, the column says.
Read the column: “Young People are Payday Lenders’ Newest Prey” by Abbey Meller
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