Brand brand New U.S. guideline on pay day loans to harm industry, boost banking institutions: agency

WASHINGTON (Reuters) – profits for the $6 billion pay day loan industry will shrivel under a brand new U.S. guideline restricting loan providers’ ability to benefit from high-interest, short-term loans, and far regarding the company could relocate to little banking institutions, in line with the country’s customer watchdog that is financial.

The customer Financial Protection Bureau (CFPB) released a regulation on Thursday needing loan providers to see whether borrowers can repay their debts and capping the amount of loans loan providers will make to a debtor.

The long-anticipated guideline nevertheless must endure two major challenges before becoming effective in 2019. 继续阅读Brand brand New U.S. guideline on pay day loans to harm industry, boost banking institutions: agency