Low-cost alternatives to payday loans (Sec. 1205)
Payday loans may often have onerous terms, but consumers short of cash who don't have access to more advantageous credit options will always need something to fill the void. The new financial reform law provides grants for experimental, small-loan programs that could serve as an alternative to payday loans.
The loans must be coupled with financial literacy and education opportunities, such as free debt counseling, and could be expanded if they prove successful.