Subprime Lender, Busy at State Level, Avoids Federal Scrutiny
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Diane Standaert, director of state policy for the Center for Responsible Lending, said bills aimed at loosening state laws that protect consumers from high-cost lending “were popping up all over the place.” CreditAlex Boerner for The New York Times
The payday lending industry is bracing for a regulatory crackdown. One of its rivals is not.
The federal Consumer Financial Protection Bureau unveiled proposed rules in June that take aim at short-term payday loans charging triple-digit annual percentage rates. The rules also would cover many so-called installment loans that have longer repayment periods but still charge an annual rate higher than 36 percent.
Yet the nation’s largest subprime installment lender, OneMain Financial, may well avoid the new regulation. OneMain caps its loans at 36 percent interest and would arguably gain an advantage from federal rules that rein in its higher-cost and more aggressive competitors…
Subprime Lender, Busy at State Level, Avoids Federal Scrutiny
