WASHINGTON (AP) — Each month, a lot more than 200,000 needy U.S. households take out what’s marketed as a loan that is brief.

Numerous have actually come to an end of income between paychecks. Them over so they obtain a “payday” loan to tide. Issue is, such loans can frequently bury them in charges and debts. Their bank records may be closed, their vehicles repossessed.

The buyer Financial Protection Bureau proposed rules Thursday to guard Americans from stumbling into exactly what it calls a “debt trap.” At the heart regarding the plan is a necessity that payday loan providers verify borrowers’ incomes before approving that loan.

The federal government is wanting to set criteria for a multibillion-dollar industry that has historically been controlled just in the state degree. Continua a leggere How gov’t aims to protect low-income users of ‘payday’ loans