Payday lending

A Consumer Financial Protection Bureau study found that borrowers pay steep bank penalty fees and may have their checking accounts closed when they take out online payday loans.

Senior members of the Obama administration posted a blog under the headline: "A Moral Case for Putting a Stop to Payday Lending Abuses." White House officials are citing support from a diverse array of religious leaders for ending the cycle of debt caused by taking out multiple payday loans.

Rather than rush its proposal to regulate short-term lenders, the Consumer Financial Protection Bureau should carefully weigh the consequences of potentially driving lenders out of the market.

The impending Consumer Financial Protection Bureau proposal will limit access to payday lending but it will not enable small-dollar lending alternatives for consumers.

Sen. Jeff Merkley, D-Ore., and nine other Democrats are attempting to block a go-around they say payday lenders use to avoid complying with state laws.

Speaking before the Senate Banking Committee, CFPB Director Richard Cordray said fintech companies should be held to the same standards as depository institutions. At the hearing, Cordray fielded questions on payday loans, indirect auto lending and regulation by enforcement rather than rulemaking.

Charlie Hallinan, who pioneered the tactics payday lenders have used for years to stymie state regulators, was indicted on federal conspiracy and fraud charges.

For the benefit of consumers who rely on nonprime credit and the lenders that provide it, Consumer Financial Protection Bureau rules offering clarity and consumer protections can't come soon enough.

GOP lawmakers and witnesses at a Senate Banking Committee hearing pointedly criticized the Consumer Financial Protection Bureau on Tuesday, setting the stage for a likely contentious hearing with the agency's director later in the week.

The Coalition for Safe Loan Alternatives intends to become a peer-to-peer forum for best practices among the alternatives to payday loans. The group will not advocate for policy changes. Rather, it aims to offer a platform for local organizations to share information and compare ways to offer low-cost access to credit.