Lenders Must Determine If Consumers Have the capability to Repay Loans That Require All or a lot of the debt to back be Paid at a time
WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today finalized a rule that is targeted at stopping payday financial obligation traps by needing loan providers to determine upfront whether individuals are able to settle their loans. These strong, common-sense defenses cover loans that need consumers to repay all or almost all of the financial obligation at the same time, including pay day loans, car name loans, deposit advance items, and longer-term loans with balloon payments. The Bureau discovered that many individuals whom sign up for these loans end up over over repeatedly spending high priced fees to roll over or refinance the debt that is same. Continue reading
