Transcripts For CSPAN Washington Journal 20160606 : vimarsan

We are asking our viewers to tell us about your experiences with it loans and if you think you regulations are needed. Phone lines are open if you want to start calling in. You can catch up with us on social media. Morning. Od monday we are talking about payday loans. . O they need more regulation after the Consumer Financial Protection Bureau came up with a slate of new proposed rules last week, here is the New York Times story about the payday loan industry which is vilified for charging Interest Rates on shortterm loans that Many Americans depend on could soon be gutted by a set of rules that regulators plan to unveil last week. The Washington Post in their story goes over exactly what those new rules would do. If enacted, the rules would require lenders to verify that borrowers can afford the loans and cap the number of times people can take up success of loans. The Washington Post talks about why this is happening. The bureau says because of the way the loans work now, borrowers who use them can be overwhelmed by fees and be trapped into a cycle of debt that forces them to skip important bills. The agency found that 80 of a loans are rolled over into a repeat loan, causing fees to pile up. 45 of any customers take out at least for loans in a row. Borrowers that payday pay 15,000 in fees for every. 100,000 they borrow as he said, we want to hear your stories about how dealing with payday loans, how you have dealt with them, how you paid them back. Where the guests do you think more regulations are needed . Several members of Congress Last week believed more regulation is needed, including congas meant richard blumenfeld, democrat of stating that payday loans are predatory, abusive and that they take advantage of this event its borrowers of disadvantaged borrowers. Connecticuts attorney general and i have fought to protect consumers from the worst abuses of industry that specifically targets those that can least afford their scams. I applaud the csfb for taking a stand. My colleagues in congress to finalize protection for working families. Another of those that cheered on new regulatory proposals from the cs pb, senator elizabeth warren, also a democrat. Crackdown on tricks that payday lenders use to generate thousands from people trapped in cycles of debt. She went on to tweet that the lending rule is not perfect, it could do more. The payday industry is already firing back. Payday lending is a 7 billion a year industry. That buys a lot of influence in congress, not only with the gop but also some democrats. If anyone tries to block or delayed the cfp be payday rolls, it is time to fight back hard. We want to hear what you think and your experience. The numbers tim wrote in forbes about these new rules after they were proposed. The headline on a story, they are not regulating payday loans, t is abolishing them. That is not what theyre saying of course. He writes that is the practical effects that they intend upon issuing. It is not obvious that this is a good idea as the Federal Reserve has pointed out. People use payloads because they choose that payday loans are viable for them. He goes on to write we want to hear your stories this morning. We want to hear your experiences with payday loans. Eric is up first in atlanta. A democrat. Good morning. Sayer what i would like to the worst thing that happens to washington, dc p we have both parties pushing for the same issues, what you have, is deregulation of the banks. Bill clinton, this is what you get it you got the republicans, the worst politicians they can such as brown rudman and what it allows it allows the banks to go to a casino and gambling our money away. They dont worry about Interest Rates. What they are doing, and then they put it back to the stock. Host bring it to the payday loan industry peer to have you had an experience with taking on a payday loan . Caller they get the money that quick. It is just a hustle. These people are ingested are in short. A lot of these politicians own these banks. They receive these types of loans. Thank you. Host lets go to omar in gaithersburg, maryland. An independent. Caller good morning. The way i feel about this, the reality is people do need these small loans. The majority of the time it is low income people. It really helps them pitted issue comes with these exorbitant Interest Rates. That itself is unethical and wrong. A perfect world, it was up to me, the way these loans would come out is it would not be 300 Interest Rate, it would be a flat fee upfront. Lets say for every 100, it is 10 , right . F 10 or that way people would not be basically tied into that flavoring with these ridiculous Interest Rates. The entire industry is unethical and should begun it. Host do you think that people should have to pay off one of these shortterm loans before they can take out another one . Bere is concern from the cfp that people will take up another loan to pay off the first one and after they get stuck into this cycle of loans. It is hard to say because someone to regulate and say that is the rule, you might make that the rule with good intentions but but it might harm someone who has no other choice, i will think the government should make that a rall a law or a rule. It is hard for anyone entity to say this is how supposed to be. Feeling i know is these Interest Rates have to go. Host i appreciate the call. Should the Consumer Financial Protection Bureau step in here and finalize these regulations, make these regulations in the books . Or should they allow people to take out these loans and deal with them themselves. Here is what the regular should we do, to break them down. Payday lenders would look into borrowing finances. Make sure they could afford loans. Exceptions to that test, looking into their finances, would be made for loans under 500. The number of times and borrower could roll over a loan into new loans could be curtailed. There are other parts of the rules but there are but but they are the main parts going off the Washington Post story we showed you earlier. As for when these rules were going to affect, the proposed rules need to go through a comment. A comment period. It may not be until next year before the process is over. We want to hear your thoughts. We are looking for your comments on the washington journal. Good morning. Caller thank you for having me. Yes, host go ahead, alan. Had he taken out one of these payday loans . Caller i use them to get by with daytoday i am on Social Security disability. Paye those things to help for regular bills and things like that. I completely agree with your previous caller. The Interest Rate on those are extreme lehigh. I understand that businesses need to have a set way to have a profit but also at the same time these Interest Rates are exuberant and predatory. Host have you ever taken out one payday loan to pay off another payday loan . Caller yes, i have. Host when did you stop the cycle . How many did it take for you to stop doing that . Caller i am currently still in the cycle. To two loansown now. I was at 1. 3 of them, so i was at one point, three of them, so host how do you get by on a daytoday basis . Caller i tried to make adjustments on my payments, to make it easier, but i know it would take longer but it is the way to go to make it easier. Host thank you for the call. Kevin is in dubuque, iowa. Line for democrats. Just like your guy in janesville. , i did use as ago payday loan. I was short oneweek and stopped so i went there and got some money. The thing is, like your last caller is the Interest Rates were so high, and you come in there with your paycheck that i was short every week, that its just a Snowball Effect that every week i was going back and back. That is how they bill you is orause if you are low income you dont have much in your ,aycheck, you did it one time then you have to keep going back because you are always shorthanded to keep on getting the loans and the only reason i haveed is because had to appendicitis surgery. I had to have a Family Member pay it off and the Family Member said dont ever do it again. That stopped the cycle host . Host atight of it, the head of it, how much did you go . Caller i cannot remember. I was not going in and getting adjusted amount. I was getting the minimum. It wasnt a lot. I wasnt that far out. It was just the minimum thing i could get it get from them or whatever. Yeah, like i said it was like every week i was going in there. It was a terrible cycle. Never think i was going to be up to stop. I was hoping to stop sometime but like i said, i couldnt because i was always short on my paycheck. I needed to go in there and pay bills and all that stuff. Because of the Interest Rates so high, that they took so much money for my paycheck, i was always short so i had to keep going back. Host you mentioned about people with low income taking out these kind of payday loans, here are some stats from the consumer by natural Protection Bureau from 2013. 56 of those who took out payday loans in 2013 earned between 10,000 and 40,000 year. Only 8 earned more than 30,000 a year. Onwant to hear your stories dealing with these payday loans. We will go through them in the first 45 minutes. Whether you think this Industry Needs more regulation. You can keep calling in. The phone lines for republicans, democrats and independents. I also want to check in with neils lesniewski. What is on the agenda today . The agenda is that we are going to get back to work on the or get to work to begin with on the Defense Authorization bill. The senate is going to proceed to that measure after a bit of a traffic jam on the senate floor, before they left for the memorial day recess. We will see the First Amendment votes in their after this this afternoon on the fiscal 2017 Defense Program bill. This week could be the one where see a lot of the debates that we need to see every year on Defense Programs, ranging to allegationsse of Sexual Assault in the the status of guantanamo may Guantanamo Bay and the facility down there. All of those policy issues that viewers are probably familiar with if they have seen a defense bill before. Recently been through the same process. That is one thing the senate is up to. Beyond that, it is going to be back to a appropriations whenever it is it gets through the since authorization host . Authorization. Host the puerto rico debt crisis and the airport wait lines. Is the house picking back up on those issues . Guest the house is back or they were when they left off. There should be something moving very quickly to try and do something about these wait lines that people have been in theering at airports tsa screening process. Thatld note as a side there was also a reprogramming request made by the head of the department of Homeland Security just before lawmakers left town to get some extra money into and to be able to convert some fulltime some parttime employees into fulltime employees. That is separate from the legislation in the house but actually might have an immediate impact. Yes, it looks like we are going to see moving forward on the puerto rico debt crisis situation, at least in the house, it is not cleared yet. The folks in the senate have been very quiet about the extent to which they support that bill. Majority leader Mitch Mcconnell and speaker ryan and the House Republicans are taking the lead on that measure. We will see where that one goes. The one that you did not mention on your list is we need to figure out how to resolve the issue of getting funding to fight against the zika virus. That still needs to be conferenced and reconciled, because the two different chambers have different plans. Host amid all of that, the first joint meeting of congress under a speaker paul ryan, the Prime Minister of india showing up at capitol hill this week. What is this going to mean for speaker ryan . Guest it is always a momentous occasion when there is a visit that leads to a joint meeting of the house and senate. Obviously, ryan will be in a and thenof presiding gaveling the house into gaveling intercession in the joint meeting in the house chamber, excuse me. Will give an being aity, i think, to fellow from india that is visiting, it is going to give us all a push on trade. We are probably going to see abouta lot of discussion trade issues resurface which could be somewhat compensated for the republicans, given where their president ial nominee, donald trump, is on trade issues and how far apart that is from people like speaker ryan. Host when the Consumer Financial Protection Bureau the least these proposed rules that we have been talking about, about these payday loans, and you talk about the reaction you saw from the officers that you check in with . The members of congressman the memos of congress . Issue,the payday loan what i would be looking forward to see if it happens, based on what we have heard while members is if theres going to be action in the house to try and delay the implementation of these regulations, which i think, might be a partisan maneuver if it were to go on, the changing of the delay, rather than the rules. The other thing is, given how long this timeline is, remember these rules may never be implemented if you manage to get through a resolution of disapproval that could actually carry over from one resident to the other. If a republican were to be elected. Host always appreciate the insight and scheduling update on capitol hill. Neils lesniewski with roll call newspaper. Have a good week. Back to the calls. We are talking about the payday rules. The proposed regulation that neils lesniewski was discussing. Towill force payday lenders look into barbers finances to make sure they can repay and afford loans before they take it out. There would be some exceptions for loans that are less than 500. Rolling loansf over into new loans would be curtailed. We are talking about them and your experiences with data loans. Carlton waiting in dallas texas. Caller how are you today . I wanted to speak out a little bit. In the affirmative for payday loans. They provide a service for people who are in financial need. A lot of times these are people otherwise they could be on the street without access to this money, because they were not have little access to credit cards. They have bills to pay, perhaps they have a car or medically experiences medically experiences medicals expenses. They couldve incurred new expenses. This is the only alternative they have with the alternative being a poncho. Thatey need that are want they should be up to get that payday loan. Host youre not on the one that feels that way. The payday loan industry has their representation here in washington. The president of the ceo president and ceo here is his Statement Last week after these rules were proposed. That was the Statement Last week. We want to hear what you think here on washington journal. Jimmy is an alabama. The mccracken. Idleexperience . Caller see anything wrong with payloads because if you cant go to a , so to get a payday loan people go to payday loans because that is a way of life. They dont have the money. Host you see this as a needed service that has to be available for people . Caller yes, very much needed because like the caller said money. People need this they get it quickest way they can. It seems like a predator but you cant help it. The world needs it. Host when the Consumer Financial Services Bureau says too many people heard here. Too many people are being roped into the cycle of debt, what would be your response . Caller my response to that is they cannot help it. Host they cant help it . Caller they can help using this payday loan over the television or go to an office. People need that little money. I dont know why Congress Wants to cut it off because people needed. Host lets go to carl, neptune beach, florida. Also a democrat. Caller hi, thanks for cspan. Shark. One word, loan that is the word, loan shark. Loan pretty innocent enough. Hello . Host i am listening, carl, go ahead. Caller i was only going to do it one time. That one time turned into about three, maybe four years that i got into it. It became a part of my finances. Host what was the original loan amount . Caller 500. Host what did you end up spending over the course of the years yet go years . Caller i cant even imagine the Interest Rate, or whatever they call it. It was ridiculous. I ended up not only doing that borrowingi started from another payday loan company. So i had two of them at the same time. I always thought i was smarter than that. Wrapped it i dont even realize how it happened now, but i got into it and became a part of my finances. Upry month, i would end doing it over and over and over again. Host if these rules were in effect that you would not be up to get that original 500 loan that you are looking for, because the Consumer Financial bureaus rules say that the company had to look at your finances and that you could not be paid it, what would you have done . Is it money that you needed . Or was it money that you couldve lived without . Caller i would have found a way. That is what i would tell people. You will find a way to get by. Dont get into that dont get locked into that system. There is always a way to do it. Host thanks for