President Obama talks concerning the economy and payday lending Thursday, at Lawson State Community university in Birmingham, Ala. (Picture: Jacquelyn Martin, AP)
WASHINGTON — President Obama pushed for stricter lending that is payday Thursday as he defended the government’s customer security watchdog against Republican efforts to defund the agency.
« the concept is pretty wise practice: you should first make sure that the borrower can afford to pay it back, » Obama said at Lawson State Community College in Birmingham, Ala., on Thursday afternoon, according to an advance copy of his speech if you lend out money.
Obama’s message arrived while the customer Financial Protection Bureau outlined a proposition to split straight straight down on payday financing techniques that end up in exactly just exactly what it calls « debt traps. «
« As People in america, we do not mind people making a revenue, » Obama stated. « But then you need to find a new business model if you’re making that profit by trapping hardworking Americans in a vicious cycle of debt. You will need to find a brand new method of doing company. «