The CFPB put out a white paper on April 25th titled, “Payday Loans and Deposit Advance Products“. For the most part, it was very bad. It’s not a question of what, but when. When will the CFPB impose rules on payday lenders?
Today, Bloomberg put out some inside information out there, “Payday Loan Restrictions Said Considered by Three U.S. Agencies“. According to one “anonymous” person, they believe the guidelines will include:
“The new rules will require banks to measure a borrower’s ability to repay the loans. They will have to disclose an annual percentage rate for the loan, wait a full billing cycle between loans and ensure that a customer pays off any loan before getting a new one.”
Of course, it seems like the CFPB is drawing a line here. If you look at the credit card industry, imagine if they imposed cool off periods?
