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CFPB Wants to Hear from You on Payday Loans
Friday, July 22, 2016 6:45 AM

When cash is tight, some people turn to payday and similar loans to make ends meet. Though these loans offer quick access to money, they often carry an average annual interest rate of over 300 percent, in addition to other fees. For some people these loans become debt traps.

Last month, Consumer Financial Protection Bureau announced a proposed rule that would require lenders to determine whether borrowers can afford to pay back their loans. The proposed rule would also cut off repeated debit attempts that rack up fees and make it harder for consumers to get out of debt. These strong proposed protections would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment loans.

The proposed rule is being formally published in the Federal Register, which means there will be an easy way to submit comments online at www.regulations.gov.

If you or someone you know has had an experience with payday and other similar loans, CFPB would like to hear from you. They are seeking comments from not only consumers, but financial institutions that may be affected by the rule, consumer advocates, and anyone else who wants to share their views. The deadline for submitting comments on the proposed rule is now Oct. 7, 2016.

CFPB also announced an inquiry into other potentially high-risk loan products and practices that are not specifically covered by the proposed rule. The deadline for submitting comments on the Request for Information is now Nov. 7, 2016.