Obama praises new rules aimed at payday lenders


Supporting proposed new rules and regulations aimed at payday lenders, President Barack Obama on Thursday said working-class families need protection from heavy debt burdens and inform Republicans that he would veto attempts to unravel regulations that control the financial industry. Obama praised the Consumer Financial Protection Bureau for its plan to set high standards in a multi-billion dollar industry that has historically been monitored only at the state level. Obama told about 1,800 people at Lawson State Community College (in Birmingham, AL) that one of the main of the main ways to ensure that paychecks last longer, is to make sure that families do not get swindled. His remarks come on the same day the consumer agency publicized the proposed payday lending rules in a hearing in Richmond, Virginia. Payday loans allocate funds to borrowers who run out of money in between paychecks. The biggest drawback to payday loans is that they tend to carry high-interest rates. The rule requires lenders to make sure that borrowers can afford to pay the money back. Obama says the Republican budget would make it more difficult for the Consumer Financial Protection Bureau to do its job. The budget is a nonbinding measure that serves as a framework for ensuing legislation. Obama also used his speech in Alabama for a broader incursion on the Republican budget. He said Republicans aim to cut taxes for affluent individuals.


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