The 2008 financial crisis raised concerns surrounding the validity of federal protection in the consumer financial market and brought increased scrutiny to short term consumer lending programs-including payday loans. In response to the political pressure, President Obama signed the 2010 Dodd-Frank Act into law. Under this Act the Consumer Financial Protection Bureau was created and in 2017 it implemented federal regulations against non-bank payday lenders for the first time. I will discuss the Consumer Financial Protection Bureau’s economic justification for the regulation of payday loans and the implications of new standards of abuse in consumer protection and financial regulation.

During the late 2000s the United States economy was faced with the most traumatic event in United States financial history since the Great Depression. Large multibillion dollar corporations collapsed, families lost their life savings, and the United States economy stood on a precipice for total destruction. In the wake of the Financial Crisis, investment firms such as Merrill Lynch collapsed and their portfolios were sold to competitors for far lower than their estimated value (Sorkin). In 2008, the Financial Crisis impacted the working man the most. With foreclosures on the rise, an estimated 81.2% increase from the year before, average citizens lost their homes, savings and certainty in the United States Government to protect their best interests (Armour). One of the hardest hit states, Nevada, saw a total foreclosure rate of about 7.3% which was an increase from the previous year of a staggering 125.7% (Armour). All these foreclosures rippled throughout the U.S housing market and made it nigh impossible for the banks securing the loans to collect upon the principle amount loaned, yet alone the interest. The shock from the United States financial sector echoed throughout the world. Correlating with the Financial Crisis, United States and global suicide rates were on the rise. According to a 2009 Article published by the British Medical Journal, United States suicide rates in men age 45-64 increased by over 6.4% of the expected trend ("Male Suicide Rate Rose during 2008 Global Economic Crisis, Says Time-Trend Study"). The Financial Crisis made it so that average individuals felt increased economic strain and an ever looming sense of disparagement. This is an examination and evaluation of the perhaps one of the greatest schemes in the history of global financial markets; this is a critical analysis of how greed, power and a lack of moral decency reshaped the world. This is an examination of how, in an age of deregulation, the powerful seemingly take precedence over the masses. This is the Story of the 2007/2008 Recession, of what has been done, of what we need to do, and of moving forward to assign blame and punishment to those responsible for the pain and suffering incurred by so many.