Inside Sources: Restricting Access to Small Loans Amounts to Legalized Redlining

Will U.S. regulators put the breaks on small-dollar loans to American Consumers? A rule finalized by the Consumer Financial Protection Bureau in 2017 to impose onerous regulations on small-dollar loans would dramatically reduce access to credit for many struggling Americans who are locked out of the traditional banking system because of poor credit or low income.

It’s worth asking, to what extent do restrictions on small-dollar loans, including payday loans, work to legalize redlining and discriminate against the most vulnerable groups of Americans?

Published in Inside Sources

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