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As the Consumer Financial Protection Bureau (CFPB) is expected to release the long-anticipated rule curbing payday lending this week, lobbyists and Republican lawmakers are gearing up to battle over the regulations that will put a dent in the profits of the $6bn industry.
Borrowers take out the small, short-term loans to cover emergencies and traditionally repay them with their next paychecks. Because the loans can carry interest rates as high as 390 percent, borrowers can become trapped in devastating cycles of taking out new loans to pay outstanding ones, the CFPB said. The agency began drafting the rule last summer to end this "debt trap," by requiring lenders to conduct background checks showing borrowers can afford the loans and to limit the number of loans made to a single borrower.
http://www.americanow.com/story/society/2017/09/19/opponents-ready-us-payday-loan-rule
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