Feds Plan Cash Advance ‘Financial Obligation Trap’ Crackdown

Regulators prepare brand brand new rules about payday advances

The government announced Thursday brand new intends to break straight straight straight straight down on pay day loans and tighten defenses for the low-income borrowers who use them.

Meant as a short-term method to get free from monetary jam, the customer Financial Protection Bureau (CFPB) claims pay day loans could become “debt traps” that harm many people around the world.

The proposals being revealed would connect with different small-dollar loans, including payday advances, automobile name loans and deposit advance services and products.