With the Consumer Financial Protection Bureau (CFPB) unveiling new proposed regulation on predatory short-term borrowing, so called “payday loans”, the Koch brothers’ network is predictably fighting back against consumers.

The CFPB’s proposed reforms would cap the highest interest rates between 28 percent and 36 percent–down from the astronomical 390% interest rates payday loans presently balloon to. Additionally, the new regulations would stop lenders from using auto titles as collateral. The CFPB’s guidelines preserve the availability of short-term loans while cracking down on the most abusive practices.

Despite ample evidence of the predatory nature of these institutions and the desperate need for reforms, the Koch network planted themselves firmly on the side of the payday lenders. When Google announced last month that they would stop running ads for payday lenders, Mercatus Center Visiting Scholar Thomas Miller And Assistant Director Of Outreach For Financial Policy Chad Reese fallaciously argued that the customers would be […]