<story><title>Consumer Protection Bureau Aims to Roll Back Rules for Payday Lending</title><url>https://www.npr.org/2019/02/06/691944789/consumer-protection-bureau-aims-to-roll-back-rules-for-payday-lending</url></story><parent_chain><item><author>andrewla</author><text>I saw a tweet [1] that followed a thread on the concept that paydays are not really a requirement any more -- it is totally possible with our existing banking infrastructure to pay salaries on a more continuous basis, but we&amp;#x27;ve built up a huge amount of institutional momentum around the idea that running payroll is a complex and laborious process that we want to infrequently.&lt;p&gt;By parallel in software engineering, branch merges&amp;#x2F;integrations used to be very expensive (in cvs&amp;#x2F;subversion&amp;#x2F;perforce) and thus were done rarely, and were more expensive and difficult because changes had more time to accumulate, but with DVCSs the problem is flipped on it&amp;#x27;s head and now we merge branches routinely without fear.  We need to fix payroll so that running it on a nearly continuous basis is possible.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;twitter.com&amp;#x2F;ESYudkowsky&amp;#x2F;status&amp;#x2F;1093187875166797824&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;twitter.com&amp;#x2F;ESYudkowsky&amp;#x2F;status&amp;#x2F;1093187875166797824&lt;/a&gt;</text></item><item><author>dawhizkid</author><text>Isn&amp;#x27;t the problem less about predatory payday loans and more an existential issue around the fact that so many people can&amp;#x27;t afford to simply &lt;i&gt;live&lt;/i&gt;?&lt;p&gt;People take these bad loans because they literally have no other choice. They are using these loans to buy groceries and cover bills, not splurge on non-essentials.</text></item></parent_chain><comment><author>numbsafari</author><text>Because the folks that use payday loans are most likely [a] not on a salary and [b] have very inconsistent wages due to inconsistent scheduling and [c] likely don&amp;#x27;t even have a bank account.</text></comment>
<story><title>Consumer Protection Bureau Aims to Roll Back Rules for Payday Lending</title><url>https://www.npr.org/2019/02/06/691944789/consumer-protection-bureau-aims-to-roll-back-rules-for-payday-lending</url></story><parent_chain><item><author>andrewla</author><text>I saw a tweet [1] that followed a thread on the concept that paydays are not really a requirement any more -- it is totally possible with our existing banking infrastructure to pay salaries on a more continuous basis, but we&amp;#x27;ve built up a huge amount of institutional momentum around the idea that running payroll is a complex and laborious process that we want to infrequently.&lt;p&gt;By parallel in software engineering, branch merges&amp;#x2F;integrations used to be very expensive (in cvs&amp;#x2F;subversion&amp;#x2F;perforce) and thus were done rarely, and were more expensive and difficult because changes had more time to accumulate, but with DVCSs the problem is flipped on it&amp;#x27;s head and now we merge branches routinely without fear.  We need to fix payroll so that running it on a nearly continuous basis is possible.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;twitter.com&amp;#x2F;ESYudkowsky&amp;#x2F;status&amp;#x2F;1093187875166797824&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;twitter.com&amp;#x2F;ESYudkowsky&amp;#x2F;status&amp;#x2F;1093187875166797824&lt;/a&gt;</text></item><item><author>dawhizkid</author><text>Isn&amp;#x27;t the problem less about predatory payday loans and more an existential issue around the fact that so many people can&amp;#x27;t afford to simply &lt;i&gt;live&lt;/i&gt;?&lt;p&gt;People take these bad loans because they literally have no other choice. They are using these loans to buy groceries and cover bills, not splurge on non-essentials.</text></item></parent_chain><comment><author>dawhizkid</author><text>Right - there are startups that are doing this i.e. &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.crunchbase.com&amp;#x2F;organization&amp;#x2F;activehours&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.crunchbase.com&amp;#x2F;organization&amp;#x2F;activehours&lt;/a&gt; has raised $190m and in the top 20 finance apps in the app store.&lt;p&gt;I assume these customers have less a need to take out a payday loan, but it could also be the case that expenses &amp;gt; pay regardless of when you receive income throughout the month.</text></comment>