(Photo: Thomas Hawk/Flickr)
The other day, the buyer Financial Protection Bureau, the federal watchdog agency faced with protecting Americans from monetary exploitation, proposed long-awaited new laws regarding the payday financing industry. Beneath the brand brand new regulations, payday loan providers could be necessary to validate an applicant’s ability to re-pay that loan without re-borrowing at the conclusion associated with loan duration. The proposed regulations simply just take aim at a particularly devastating payday financing practice. Whilst the rates charged on a regular two-week cash advance are painfully high (though, on an annualized portion foundation, they’re less than the overdraft costs charged by banks), the true dilemmas usually start when borrowers are not able to pay back once again the mortgage by the end associated with two-week duration and sign up for another loan, with extra costs. Continue reading “Is Legislation the clear answer to America’s Cash Advance Addiction?”