At least 14 states have banned high-interest payday lending, but providing these short-term, high-interest loans is still a multi-billion dollar industry in the United States.
In June, the Consumer Financial Protection Bureau proposed a rule to end payday debt traps by requiring lenders to make sure consumers have the ability to repay their loans. While many would like to see an end to payday lending companies, others point out that they are the only source of loans for millions of people, many of whom do not have credit histories or access to credit cards or traditional bank loans.
Joining us to discuss payday loans and the dangers of predatory lending are writer, social innovator and speaker Vicki Robin, who co-authored the best-selling Your Money or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence; and Chris DeSimio, a financial advisor with Wells Fargo Advisors in Cincinnati.
Listeners are reminded that the information provided on today's show is general in nature and may not apply to their personal investment situations.