This is the Cato Daily Podcast for Friday, April 15th, 2016. I'm Caleb Brown.

The Consumer Financial Protection Bureau will likely roll out regulations governing so-called

payday loans this year. What does that mean for low-income people who otherwise

have a difficult time-accessing credit? They unite Associate Director of

Financial Regulation Studies at the Cato Institute comments.

The CFAB has already rolled out a proposal where it's a 60-page document where they discuss different ideas.

It seems they've been sort of kicking around internally

about how to regulate the payday loan industry.

And they've now indicated that they're

going to go through their formal rulemaking process,

which would mean that they would come out with draft rules.

It would give the public time to comment on them and then have final rules down the road.

So we're probably looking at a maybe six month,

maybe a little bit longer process.

And what is the rationale that the government has offered so far for saying this is the first big

thing I feel like the CFPB has stuck its nose into? I mean they've done some other work on mortgages and they've been talking about some

student loan issues.

I know that they had gotten into the mortgage space pretty early.

I think that was one of the first things they did.

I think that there's a certain story you can tell about payday lending that's very

sympathetic, which is low-income people get stuck in this cycle of

debt they think they're taking out just one loan they wind up in debt over and

...