Customer protection agency, for first-time, takes aim at payday loan providers

Customer protection agency, for first-time, takes aim at payday loan providers

The buyer Financial Protection Bureau on Thursday revealed a plan that is new it stated would help rein into the $50 billion payday financing industry and stop low-income borrowers from facing spiraling degrees of financial obligation.

The proposition, which still must face months of review, marks the very first effort by the us government to manage payday loan providers, whose loans — built to assist borrowers in a pinch — usually include triple-digit annualized interest levels. The CFPB, in its plan, shows that payday lenders through the outset should see whether borrowers are able to repay without re-borrowing or defaulting. (more…)