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New Rules To Ban Payday Lending ‘Debt Traps’

New Rules To Ban Payday Lending ‘Debt Traps’

Payday loan provider ACE money Express sometimes appears on San Mateo Boulevard in Albuquerque, N.M. High-interest lending methods are now being targeted by brand new regulations that are federal. Vik Jolly/AP hide caption

Payday loan provider ACE money Express is observed on San Mateo Boulevard in Albuquerque, N.M. High-interest financing techniques are now being targeted by new regulations that are federal.

The customer Financial Protection Bureau on Thursday is proposing brand new laws to protect customers from predatory financing techniques that the CFPB’s top regulator calls «debt traps.»

Americans are being «set up to fail» by payday and auto-title loan providers, Richard Cordray, the manager associated with the customer Financial Protection Bureau, informs NPR.

Customer Financial Protection Bureau Director Richard Cordray (center) listens to reviews during a field hearing on payday financing in Richmond, Va., in might.