Payday loans have become a crutch for many people. At the onset, they are quick and easy when you’re strapped for cash. However, over time they can end up costing the borrower tons of money in additional fees. Some people have described them as a financial form of slavery.
That is why the Consumer Financial Protection Bureau wants to hear from the public regarding payday loans. There is a new rule being proposed that would require lenders to determine whether consumers have the ability to repay the payday loan, auto title loan and other high stakes, high cost loans. The rule would put a stop to repeated debit attempts that cause vulnerable consumers to rack up insane debt fees.
Why is this being done now? It’s an attempt to help borrowers better afford their debt and not sink into a long spiral of debt. The overall goal is to put stronger regulations in place that will protect consumers better and end payday debt traps.