Opponents sharpen knives over impending U.S. payday loan ruleWASHINGTON (Reuters) - Lobbyists and Republican lawmakers are gearing up for battle over a new U.S. regulation that is likely to dent profits in the $6 billion short-term, high-interest “payday” loan industry.  The Consumer Financial Protection Bureau (CFPB) is expected in coming days to release a long-anticipated rule curbing payday lending, now that a final review by other regulatory agencies has concluded, three people familiar with the matter said. The rule pits the country’s consumer financial watchdog against payday lenders who say the new regulation will wipe out much of their established industry, currently overseen by the states, and push poor and rural customers to use illegal loan sharks.  “We are likely, on our part, to take the appropriate actions that we can to see this rule never becomes effective, and that includes a possible lawsuit,” said Dennis Shaul, chief executive of the Community Financial Services Association of America (CFSA), a payday lending trade group. The group says the rule-drafting process was flawed because the agency did not listen to borrowers or properly process comment letters - an argument that could form the basis of potential litigation. The CFPB has declined to comment on its procedure or on the final rule, but public records show it closely followed the law throughout the rulemaking process. Meanwhile, President Donald Trump’s Republican party, which says the CFPB goes too far in its regulations, wants to undo the rule through legislation. Recently, Republicans in the House of Representatives added a “rider,” or amendment, to a spending bill banning the CFPB from regulating the payday loan industry. They are also poised to repeal the rule under the Congressional Review Act and bar the CFPB from ever drafting a similar regulation, according to aides and lobbyists. Borrowers take out the small, short-term loans to cover emergencies and traditionally repay them with their next paychecks. Because the loans can carry interest rates as high as 390 percent, borrowers can become trapped in devastating cycles of taking out new loans to pay outstanding ones, the CFPB said.  The agency began drafting the rule last summer to end this “debt trap,” by requiring lenders to conduct background checks showing borrowers can afford the loans and to limit the number of loans made to a single borrower.  “The rule that we’re expecting will do a lot to combat the debt cycle,” said Karl Frisch, head of Allied Progress, a consumer advocacy group. politicsNews
opponents sharper knives impending panda loan rulewashington reuters lobbyists republican lawmakers gearing battle new regulation likely dent profits billion panda loan industry the consumer financial protection bureau cfb expected coming days release rule curling panda lending final review regulatory agencies concluded three people familiar matter said the rule pits country consumer financial watchdog panda lenders say new regulation wipe much established industry currently overseen states push poor rural customers use illegal loan sharks we likely part take appropriate actions see rule never becomes effective includes possible lawsuit said dennis shall chief executive community financial services association america casa panda lending trade group the group says process flawed agency listen borrowers properly process comment letters argument could form basis potential litigation the cfb declined comment procedure final rule public records show closely followed law throughout rulemaking process meanwhile president donald trump republican party says cfb goes far regulations wants undo rule legislation recently republicans house representatives added rider amendment spending bill banning cfb regulating panda loan industry they also poised repeal rule congressional review act bar cfb ever drafting similar regulation according aides lobbyists borrowers take small loans cover emergencies traditionally repay next paychecks because loans carry interest rates high percent borrowers become trapped devastating cycles taking new loans pay outstanding ones cfb said the agency began drafting rule last summer end debt trap requiring lenders conduct background checks showing borrowers afford loans limit number loans made single borrower the rule expecting lot combat debt cycle said karl fish head allied progress consumer advocacy group politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Opponents sharpen knives over impending U.S. payday loan ruleWASHINGTON (Reuters) - Lobbyists and Republican lawmakers are gearing up for battle over a new U.S. regulation that is likely to dent profits in the $6 billion short-term, high-interest “payday” loan industry.  The Consumer Financial Protection Bureau (CFPB) is expected in coming days to release a long-anticipated rule curbing payday lending, now that a final review by other regulatory agencies has concluded, three people familiar with the matter said. The rule pits the country’s consumer financial watchdog against payday lenders who say the new regulation will wipe out much of their established industry, currently overseen by the states, and push poor and rural customers to use illegal loan sharks.  “We are likely, on our part, to take the appropriate actions that we can to see this rule never becomes effective, and that includes a possible lawsuit,” said Dennis Shaul, chief executive of the Community Financial Services Association of America (CFSA), a payday lending trade group. The group says the rule-drafting process was flawed because the agency did not listen to borrowers or properly process comment letters - an argument that could form the basis of potential litigation. The CFPB has declined to comment on its procedure or on the final rule, but public records show it closely followed the law throughout the rulemaking process. Meanwhile, President Donald Trump’s Republican party, which says the CFPB goes too far in its regulations, wants to undo the rule through legislation. Recently, Republicans in the House of Representatives added a “rider,” or amendment, to a spending bill banning the CFPB from regulating the payday loan industry. They are also poised to repeal the rule under the Congressional Review Act and bar the CFPB from ever drafting a similar regulation, according to aides and lobbyists. Borrowers take out the small, short-term loans to cover emergencies and traditionally repay them with their next paychecks. Because the loans can carry interest rates as high as 390 percent, borrowers can become trapped in devastating cycles of taking out new loans to pay outstanding ones, the CFPB said.  The agency began drafting the rule last summer to end this “debt trap,” by requiring lenders to conduct background checks showing borrowers can afford the loans and to limit the number of loans made to a single borrower.  “The rule that we’re expecting will do a lot to combat the debt cycle,” said Karl Frisch, head of Allied Progress, a consumer advocacy group. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: opponents sharper knives impending panda loan rulewashington reuters lobbyists republican lawmakers gearing battle new regulation likely dent profits billion panda loan industry the consumer financial protection bureau cfb expected coming days release rule curling panda lending final review regulatory agencies concluded three people familiar matter said the rule pits country consumer financial watchdog panda lenders say new regulation wipe much established industry currently overseen states push poor rural customers use illegal loan sharks we likely part take appropriate actions see rule never becomes effective includes possible lawsuit said dennis shall chief executive community financial services association america casa panda lending trade group the group says process flawed agency listen borrowers properly process comment letters argument could form basis potential litigation the cfb declined comment procedure final rule public records show closely followed law throughout rulemaking process meanwhile president donald trump republican party says cfb goes far regulations wants undo rule legislation recently republicans house representatives added rider amendment spending bill banning cfb regulating panda loan industry they also poised repeal rule congressional review act bar cfb ever drafting similar regulation according aides lobbyists borrowers take small loans cover emergencies traditionally repay next paychecks because loans carry interest rates high percent borrowers become trapped devastating cycles taking new loans pay outstanding ones cfb said the agency began drafting rule last summer end debt trap requiring lenders conduct background checks showing borrowers afford loans limit number loans made single borrower the rule expecting lot combat debt cycle said karl fish head allied progress consumer advocacy group politicsnews