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The Consumer Financial Protection Bureau (CFPB) released a recent report that highlights the upcoming regulations that the bureau intends to impose on payday loans. These new regulations are expected to limit lenders’ access to consumers’ bank accounts, a practice that results in overdraft fees and the closings of accounts. The agency’s coming rule is the first effort by the federal government to rein in small-dollar short-term loans, for which interest rates can climb to as much as 500%
“The true costs of these loans, taken in the aggregate, must be kept in mind as we assess the effects on consumers,” CFPB Director Richard Cordray told reporters on a conference call Tuesday. “Getting booted from the banking system can have far-reaching repercussions for consumers, leading to a downward spiral that costs them even more money and their precious time.”
http://www.wsj.com/articles/cfpb-sheds-light-on-coming-payday-loans-rule-1461124862
