If the rule change is made, the CFPB would require lenders to implement one of two options to make sure that borrowers do not end up in an unending cycle of debt. The first option is called debt trap prevention, and would require lenders to determine, at the outset of a lending process, whether a consumer could repay the loan and all fees on time, without defaulting or re-borrowing. The second option is debt trap protection, which would require lenders to offer affordable repayment options as well as limit the number of loans per borrower within specific time frames. For longer-term loans, debt trap protection would mean applying either an interest-rate (and application fee) cap, or limiting monthly dues to equal a maximum of 5 percent of the borrower’s gross monthly income.

http://www.pymnts.com/in-depth/2015/the-cfpb-payday-lending-and-unintended-consequences/#.VZKaFflVikp