When the CFPB issues regulations governing payday loans, people who truly need short-term loans may be left with few options.
"In their intent in protecting consumers, they are going to reduce the choices consumers have," Hank Hubbard, president/CEO of the $33 million One Detroit Credit Union in Detroit, said.
Under increased regulation, neither payday lenders nor traditional lenders will be able to afford to offer short-term loans, he said. Borrowers will be unable to obtain loans without going to unscrupulous lenders such as loan sharks, he added.
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