What the ARM Industry Can Learn from Payday Lenders’ Defenders

Aaron Steinberg

The payday lending industry is in a tough spot. Many politicians and regulators plus a sizable segment of the press commonly refer to the industry’s small-dollar, short-term lending model as predatory, usurious or worse. That negative characterization has led to a lot of government action, too. State legislatures have been passing laws for years now that, within those states, make payday lending impractical if not untenable. What’s more, the Consumer Financial Protection Bureau plans to finalize new rules that may very well wreck the whole industry.

We don’t know – yet – how tough the new rule will be on the payday lending industry, but it’s clear that the industry, whether by design or not, has cultivated a network of influential people outside the industry to defend them and that defense has been impressive.

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