Payday loans are now legal in the state of texarka
Payday lending is now legal for most Americans.
The federal government is now cracking down on payday lenders, a move that’s set to make the state one of the first in the country to officially become the first to enact the change.
“It’s a huge relief,” said Jamie Poynton, an attorney with the National Consumer Law Center.
“It’s been an uphill battle.”
Under the Fair Credit Reporting Act, payday lenders are required to disclose their borrowers’ names, Social Security numbers, addresses, and other personal information, in addition to making them accountable for payments and providing consumers with a way to contact them if they have questions.
Lenders must also notify customers within 14 days if their accounts are closed and notify them of the amount owed.
In 2018, the U.S. Consumer Financial Protection Bureau issued new rules that will take effect in November, making payday lending more accountable to borrowers and consumers.
“We have been working to make payday loans safer, fairer and more consumer-friendly for consumers for some time now,” said Chris Smith, the agency’s acting director.
“Today’s announcement means payday lending has finally been legalized in the United States.”
Poynton said the lawmaking process for payday lending will likely take several months, but he expects that the federal government will ultimately make the change effective on November 6.