Monthly Archives: July 2020

New payday loan rules could put millions in debt trap

The Consumer Financial Protection Bureau Tuesday issued a final rule on payday loans, repealing Obama-era provisions that would have required lenders to ensure borrowers could repay their loans before issuing cash advances. To help ensure that borrowers do not fall into so-called debt traps, the CFPB released new multi-part payday loan regulations in 2017 which, among other things, required payday ...

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US consumer watchdog removes need for ‘ability to pay’ from payday loan final rule

WASHINGTON (Reuters) – The U.S. Consumer Financial Protection Bureau released its long-awaited payday loan measure on Tuesday that reverses an Obama-era proposal requiring lenders to first ensure a borrower is able to reimburse them. Consumer advocates blasted the move as yet another sign the Trump administration is being soft on predatory lenders. The rule follows the agency’s 2019 proposal to ...

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