Jeb Hensarling

Consumer protection bureau cracks down on payday lenders with tough nationwide regulations

Consumer protection bureau cracks down on payday lenders with tough nationwide regulations

The nation’s top consumer financial watchdog on Thursday issued tough nationwide regulations on payday and other short-term loans, aiming to prevent lenders from taking advantage of cash-strapped Americans.

The long-awaited rules from the Consumer Financial Protection Bureau — the first broad federal regulations — would require lenders in most cases to assess whether a consumer can repay the loan.

“The CFPB’s new rule puts a stop to the payday debt traps that have plagued communities across the country,” said Richard Cordray, the bureau’s director. “Too often, borrowers who need quick cash end up trapped in loans they can’t afford. The rule’s common sense ability-to-repay...

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