BIRMINGHAM, Ala. The agency created at President Obama’s urging in the aftermath of the financial crisis, took its most aggressive step yet on behalf of consumers on Thursday, proposing regulations to rein in short-term payday loans that often have interest rates of 400 percent or more— the Consumer Financial Protection Bureau.
The guidelines would protect an extensive part of the $46 billion payday loan market that acts the working bad, lots of whom don’t have any cost savings and small use of conventional loans from banks. The laws wouldn’t normally ban high-interest, short-term loans, which are generally used to pay for fundamental costs, but would need loan providers to ensure that borrowers have actually the methods to repay them. Continue reading “Payday Loan Rules Proposed by Customer Protection Agency”