Central Texas Congressman Blasts New Payday Lending Restrictions

WASHINGTON (KWTX) U.S. Rep. Roger Williams, R-Austin, Friday blasted new restrictions of the payday lending industry, calling them irresponsible.

The rules the Consumer Financial Protection Bureau unveiled Thursday represent the first nationwide regulation of the payday loan industry.

They require payday lenders to determine before making a loan whether a borrower can afford to repay the amount in full with interest within 30 days.

"Once again, (CFPB Director Richard) Cordray has decided to punish hardworking American consumers by taking away their right to small-dollar emergency loans," Williams said in a press release Friday.

"As I said back in 2016 when (President Barack) Obama implemented harsher lending restrictions, Washington bureaucrats will never experience the financial instability that many of our hardworking families do. We must correct this system by rolling back the rule-making authority of this agency, whose decisions are guided by ‘scholars' rather than industry and subject matter experts," he said.

Other rules involved such issues as the number of times a loan may be renewed.