Every year about twelve million Americans take out payday loans. It really is a big — and controversial — company.
The U.S. customer Financial Protection Bureau called these loans “debt traps” and proposed brand new guidelines Thursday to control the industry’s worst techniques.
Pay day loans typically have rates of interest of over 100% — far more than the 15% to 30per cent yearly interest levels on personal credit card debt.
The shares of America’s top payday loan providers dropped sharply in reaction to the news headlines regarding the regulations that are additional the works.
New guidelines: Borrowers frequently have to get more loans to try and repay the loan amount that is original. Read more