New Era for Payday Lending: Regulation, Innovation while the Road Ahead

The CFPB proposed rules divide covered loans into two categories: short-term and long term loans. Short term installment loans include items that are generally due from the borrower’s payday that is next well as single-payment automobile name loans. For those loans, lenders have the choice of performing a test that is full-payment structuring the mortgage in a manner that prevents the debtor from becoming caught with debt. The payment that is full requires the lending company to confirm the borrower’s earnings (after taxes), borrowing history (credit file check), and certain other key responsibilities the debtor could have (including basic cost of living such as for example food, lease and medical expenses). (more…)

...