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Regulators launch major crackdown on payday lenders
Regulators launch major crackdown on payday lenders

Federal regulators are launching a major crackdown on payday and other short-term, high-interest lenders by proposing tough new regulations to halt the cycle of debt that cripples some consumers. The planned rules from the Consumer Financial Protection Bureau would require lenders to determine a borrower's ability to repay and to limit how often a consumer can roll over existing loans into new ones. The proposed regulations are designed to keep cash-strapped Americans from falling into what the agency describes as a predatory debt trap in which they must take out new loans to pay off the old ones — ultimately paying more in fees than the original amount they borrowed....

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