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CFPB proposes slate of payday loan rules

Joe Mont | June 2, 2016

The Consumer Financial Protection Bureau has long made it known that its rogues gallery includes payday lenders. A rule proposed on June 2 includes its toughest attack yet on the industry.

The proposed regulations would apply to certain short-term and longer-term credit products that are “aimed at financially vulnerable consumers.” Those products include payday and auto title loans, and installment loans with a total, all-in annual percentage rate that exceeds 36 percent. These arrangements, it says, are “pushing borrowers into debt traps.”

“Chief among these concerns is that consumers are being set up to fail with loan payments that they are unable to repay,” a statement from the Bureau says. “The CFPB is concerned that these...

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