Brand Brand New Rules Seek To Rein In Predatory Payday Lending, But Will They Work?

Brand Brand New Rules Seek To Rein In Predatory Payday Lending, But Will They Work?

The Consumer Financial Protection Bureau has finally released its proposed rules intended to prevent borrowers from falling into the costly revolving debt trap that can leave people worse off than if they hadn’t borrowed money in the first place after nearly four years of studying the issue of high-cost, short-term financial products like payday loans, and auto-title loans.

The proposed guidelines, which may impact loan providers of pay day loans, car name loans, deposit improvements, and particular high-cost installment and open-ended loans, develop in the Bureau’s March 2015 report, including alternatives for reducing the probability of borrowers having to sign up for brand brand brand new loans to pay for the old people, and dropping target towards the often devastating period of financial obligation connected with these financial loans.