CFPB Considering Tighter Controls On Payday Loan Business

Law360, New York (April 24, 2013, 12:06 AM EDT) -- The Consumer Financial Protection Bureau said it may look to install “cooling-off periods” and other measures aimed at keeping borrowers from getting too far behind on payday loans in a Wednesday report outlining the dangers of the small-dollar loan industry.

The CFPB's report found that many consumers who use payday loans — or deposit advance loans issued by several banks, which largely have similar characteristics to payday loans — often fall into a “cycle of indebtedness,” since lenders do not confirm a borrower's ability to repay...
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