Regulators prepare guidelines on payday advances to shield borrowers
Monday
WASHINGTON – distressed by consumer complaints and loopholes in state regulations, federal regulators are assembling the first-ever guidelines on pay day loans targeted at helping cash-strapped borrowers avoid dropping into a period of high-rate financial obligation.
The customer Financial Protection Bureau says state legislation regulating the $46 billion payday financing industry often flunk, and that fuller disclosures for the interest and charges – usually a yearly portion rate of 300 % or even more – may be required.
Complete information on the proposed guidelines, expected early this current year, would mark the time that is first agency has utilized the authority it had been provided underneath the 2010 Dodd-Frank legislation to modify pay day loans.