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  • 2 years ago
Federal Agency Proposes Rules to Crack Down on Payday Loans

Federal Agency Proposes Rules to Crack Down on Payday Loans

The Consumer Financial Protection Bureau proposed new regulations Thursday to protect consumers from payday, auto title and other high-cost loans. The so-called "debt trap" loans can carry annual interest rates of over 300 percent, in addition to other fees and penalties. The new rules would require lenders to verify a borrower's ability to repay and prohibit repeated short-term borrowing. Critics say the rules would hurt consumers who need payday loans to manage budget shortfalls. We discuss the rules and their potential impact on California consumers.

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