Alert
Close

AARP holds senators accountable for key bipartisan Medicare vote. Learn more

Highlights

Open
Renew for 3 and attend Life at 50+ for free

Contests and
Sweeps

You Could Choose Your Dream Vacation!

Hawaii, the Grand Canyon or an Alaskan Cruise! No purchase necessary. Ends May 31. See official rules.


Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

You Could Choose Your Dream Vacation
Happy African American couple

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Financial Regulatory Reform

Payday Loans to Get Scrutiny

Legislation allows federal regulation of providers for the first time

These risky loan products are about to get more attention. Under financial reform legislation enacted in July of this year, payday loan providers will be subject to federal regulation for the first time. Consumer advocates say this ought to bring about change for a sector that traditionally operated in the shadows.

These risky loan products are about to get more attention. Under financial reform legislation enacted in July 2010, payday loan providers will be subject to federal regulation for the first time. Consumer advocates say this ought to bring about change for a sector that traditionally operated in the shadows.

Most important, the government will likely start collecting data on the products payday lenders are peddling and that alone could bring an end to some of the industry's shadiest practices, Leech says.

"It's possible that some of the things they've been doing that harm consumers, they might stop doing voluntarily so they don't have to report [any of] it," she says.

But big changes to payday lending will most likely take time. Regulation is expected to come from the new Consumer Financial Protection Bureau. This agency opened its doors July 21, 2011, but Senate Republicans — who are demanding changes to the agency’s structure — have vowed to block the confirmation of any nominee to lead the organization.

Once the agency is fully operational, consumers will have a government agency to turn to for help and guidance. And consumer advocates say they hope to see requirements forcing payday lenders to clarify to consumers the costs and rules associated with the products they're selling.
In addition to facing more regulation, payday lenders may also face more competition: The financial reform law also contains incentives for more mainstream financial institutions to offer low-cost loans that serve as a safer alternative to payday lending.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Advertisement

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Credit safeguards with AARP® Identity Theft Protection from TrustedID®.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Man using cell phone outdoors

Members save on monthly service & usage fees and get free activation with Consumer Cellular.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Advertisement

Advance your skills. Transform your career.

Explore your learning possibilities.