WASHINGTON (Reuters) – profits when it comes to $6 billion pay day loan industry will shrivel under a brand new U.S. guideline limiting loan providers’ ability to benefit from high-interest, short-term loans, and far of this company could relocate to little banking institutions, in line with the country’s customer watchdog that is financial.
The buyer Financial Protection Bureau (CFPB) released a regulation on Thursday requiring loan providers to see whether borrowers can repay their debts and capping how many loans loan providers could make up to a debtor.