Category: Advance America Online Payday Loans

Brand New Rules To Ban Payday Lending ‘Debt Traps’

Brand New Rules To Ban Payday Lending ‘Debt Traps’

Payday loan provider ACE money Express is observed on San Mateo Boulevard in Albuquerque, N.M. High-interest financing methods are now being targeted by brand brand brand new federal laws.

The buyer Financial Protection Bureau on Thursday is proposing brand new laws to protect customers from predatory financing methods that the CFPB’s top regulator calls “debt traps.”

Americans are being “set up to fail” by payday and auto-title loan providers, Richard Cordray, the manager for the customer Financial Protection Bureau, informs NPR.

Customer Financial Protection Bureau Director Richard Cordray (center) listens to remarks during a field hearing on payday financing in Richmond, Va., in May.

“just how these items are organized, it is extremely tough to repay the mortgage, and so people find yourself borrowing over repeatedly and having to pay much more in charges and interest than they borrowed when you look at the beginning,” Cordray states. (more…)

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