Sweeping brand brand new guidelines proposed Thursday by the customer Financial Protection Bureau (CFPB) could upend the cash advance industry, which consumer advocates say usually traps cash-strapped employees into a vicious period of borrowing.
The number of times people can take out successive loans if enacted, the rules generally will require lenders to verify that borrowers can afford the loans and cap. The guidelines also would rise above payday advances to a target other high priced short-term loans, including some high-interest installment loans and automobile name loans.
Here’s more in regards to the guidelines and exactly how customers will be impacted:
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