New Payday Loan Regulation Coming
Payday lenders are notorious for charging exorbitant fees and interest rates to the consumers who use their services. Many states have tried to enact rules and regulations governing the loans; however, they sometimes encounter opposition from those in the $46 billion dollar industry.
For the first time ever, a federal agency has drafted legislation that hopes to reduce the number of unaffordable loans that lenders can make. The Consumer Financial Protection Bureau was created after the 2008 financial crisis and will soon be releasing these new regulations.
To read more about the proposed rules and how they aim to help further regulate the payday loan industry, head over to the New York Times.