Payday Loans: Feds Propose New Rules to End 'Debt Trap'

June 2, 2016 12:29 PM

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The Consumer Financial Protection Bureau proposed new rules on Thursday designed to end what it calls "payday debt traps" by requiring lenders to make sure a borrower can repay that loan before approving it.

The new rules would cover a variety of small-dollar loans marketed to financially vulnerable consumers, such as payday loans, auto title loans (where the vehicle is used as collateral), high-cost installment and open-ended loans.

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