07-08-2020, 10:53 PM
Quote:The Consumer Financial Protection Bureau on Tuesday issued a final rule on payday lending, rescinding Obama-era provisions that would have required lenders to ensure borrowers could repay their loans before issuing cash advances. To help ensure borrowers were not getting sucked into so-called debt traps, the CFPB released a new, multi-part payday loan regulation in 2017 that, among other things, required payday lenders to check that borrowers could afford to pay back their loan on time by verifying information like incomes, rent and even student loan payments. But the Trump administration blocked those rules from going into effect and called for a review. On Tuesday, the CFPB — under new leadership — released a finalized rule that doesn’t require lenders to check that borrowers can afford to pay.New payday loan rules could leave millions 'exposed' to debt trap