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CFPB Considers Proposal to End Payday Financial Obligation Traps

CFPB Considers Proposal to End Payday Financial Obligation Traps

Proposal Would Cover Pay Day Loans, Vehicle Title Loans, and Certain High-Cost Installment and Open-End Loans

WASHINGTON, D.C. — Today the buyer Financial Protection Bureau (CFPB) announced it’s considering rules that are proposing would end payday debt traps by needing lenders to make a plan to be sure customers can repay their loans. The proposals in mind would additionally restrict loan providers from trying to gather re re re payment from consumers’ bank reports in many ways that tend to rack up extortionate charges. The strong customer defenses being considered would use to pay day loans, automobile name loans, deposit advance items, and particular high-cost installment loans and open-end loans.

“Today we have been using a step that is important ending your debt traps that plague scores of consumers over the country,” said CFPB Director Richard Cordray.