Many Americans are struggling to make ends meet, as the COVID-19 pandemic has taken jobs, leaving people without an income. While this is happening, payday lenders continue to take advantage of people.
Policy Matters Ohio Project Director Kalitha Williams discussed how the Biden administration may be able to rein in these payday lenders and more on America’s Work Force Union Podcast.
Reining in payday lenders
Williams said the road to reining in payday lenders will be tough, as each state has their own rules and regulations on interest rates and other factors. However, the Biden administration has plans to revamp the Consumer Financial Protection Bureau.
The nominated head of this bureau should have a fairly easy confirmation process and a history of going after predatory student loan collectors and more.
Additionally, the previous head of the Consumer Financial Protection Bureau set up roadblocks to make it more difficult to rein in payday lenders. Regardless, Williams expects the new head to do everything in their power to rein these lenders in.
Senate Committee on Banking, Housing and Urban Affairs
U.S. Senator Sherrod Brown has been announced as the new chairman of the Senate Committee on Banking, Housing and Urban Affairs, something Policy Matters Ohio is excited about.
His long record of fighting for the working people and standing up to Wall Street and big banks makes him perfect for the position.
Williams hopes the committee will explore alternative banking options, such as through the United States Postal Service. Since many Americans do not have access to banking services, they fall back on payday lenders, cash checking services and other high interest banking services.
Lastly, she said it will be important to address unfair overdraft fees. These fees have become a source of great revenue for banks and can leave Americans paying heavy fees.