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As presently written, the Payday Lending Rule calls for loan providers to look at borrowers’ pay stubs, talk to companies

As presently written, the Payday Lending Rule calls for loan providers to look at borrowers’ pay stubs, talk to companies

Customer advocates sound concern about “debt traps.” Alternative methods to borrow funds.

The customer Financial Protection Bureau today proposed rolling straight back the main element supply of an Obama age financing guideline built to protect individuals using term that is short high interest loans, also called tiny buck or pay day loans.

Underneath the proposal (PDF), which amends the 2017 Payday Lending Rule, loan providers wouldn’t normally need to make sure their borrowers have the methods to repay some forms of loans. Eliminating the “ability to pay for” requirement would influence loans with a term of 45 times or less.
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