President Obama is expected to speak about payday lending when he gives a speech at Lawson State Community College today in Birmingham. Reports state that U.S. Representative Terri Sewell said President Obama will comment on the subprime lending industry during his speech. The Consumer Financial Protection Bureau is expected to announce the new rules as it relates to payday loans before President Obama’s speech. I am hopeful that the changes will help consumers across the country.
The payday loan industry is a big business in Alabama. It seems a payday loan company is on every street and many of my clients have become trapped in its vicious cycle. The loans have notoriously high interest rates and usually result in the just more debt to the borrower. Usually, clients are just paying interest payments every week and not one dime of principal on these loans.
Hopefully, with President Obama putting the spotlight on these subprime loans, some positive changes can be made to this industry.