The customer Financial Protection Bureau held a hearing Thursday in Kansas City to go over the pay day loan industry, and bureau manager Richard Cordray announced proposed reforms built to protect customers from loans which he said become “debt traps.” While Cordray’s agency does not have the authority to determine usury caps on these loans, he stated it offers authority “to tidy up unjust, misleading, or abusive methods.”
“Something has to change,” Cordray stated.
He stated that in the last few years their company has held industry hearings and general public discussion boards across the U.S.