Payday loans are short term loans for small amounts of money offered by companies outside the mainstream banking system. Millions of Americans use them to cover unexpected expenses when they’re in a pinch. They’re an easy way to get some quick cash, but they have serious drawbacks, including interest rates as high as 390 percent. Now the U.S. agency that helps consumers with money matters — The Consumer Financial Protection Bureau — wants to better regulate the payday loan industry.
Morning Shift talks with Illinois Attorney General Lisa Madigan about some of the proposals.