Feds' Crazy Plan: Make Risky Loans, Don't Charge For Them

Feds’ Crazy Plan: Make Risky Loans, Don’t Charge For Them by Ike Brannon, Foundation For Economic Education

The Government Protects the Poor Right Out of Credit

In perhaps the greatest example of wishful thinking we’ve seen in recent times, the Consumer Financial Protection Board Administrator Richard Cordray testified before Congress last month that banks and credit unions should step up their loans to low-income workers with poor credit by creating new products that compete with payday loans. It is a notion that’s completely at odds with the actions of the CFPB, as well as the capabilities of banks and credit unions.

Since its inception the CFPB has all but declared war on payday and title loan companies, the two...