A Paternalistic National Treatment For Cash Advance ‘Debt Traps’

A Paternalistic National Treatment For Cash Advance ‘Debt Traps’

National paternalism consists not merely of providing individuals things they didn’t purchase, but additionally in preventing folks from making decisions that, into the benevolent judgment of superintending bureaucrats, aren’t inside their interest that is best. Like moms and dads with young kids, federal federal government admonishes us, “No, no, this isn’t for you personally.”

Nowhere has government’s paternalistic concern for bad monetary decision-making by low income people been more obvious than regarding personal debt. Into the aftermath associated with the 2008 crisis that is financial Congress passed the Dodd–Frank Wall Street Reform and customer Protection Act, which created a company called the customer Financial Protection Bureau (CFPB). One of several purposes of CFPB would be to control techniques into the customer financial sector. Read more