CFPB Finalizes Rule To Avoid Payday Debt Traps

CFPB Finalizes Rule To Avoid Payday Debt Traps

Lenders Must Determine If Consumers Have the capacity to Repay Loans That Require All or the majority of the financial obligation become Paid right back at the same time

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today finalized a rule that is directed at stopping debt that is payday by needing loan providers to ascertain upfront whether individuals are able to repay their loans. These strong, common-sense defenses cover loans that need customers to repay all or almost all of the financial obligation at the same time, including payday advances, car name loans, deposit advance items, and longer-term loans with balloon re re payments. (more…)