NEW YORK (AP) — Tougher rules governing the payday lending industry, finalized during the final weeks of an Obama-era appointee who led the Consumer Financial Protection Bureau, will remain in place after Congress allowed a deadline to overrule them pass.
The rules require payday lenders to determine upfront the ability of potential borrowers to repay short-term loans of 45 days or less. It the short-term loan period expires and the debt is unpaid, borrowers can face painful charges or be forced to refinance the loan, creating what consumer advocates see as a debt trap.
Mick Mulvaney, the CFPB chief appointed by President Donald Trump, had sought to overrule those regulations. He has already announced plans to revisit them.
Groups like the Center for Responsible Lending called the development a win for consumers Thursday.