The Consumer Financial Protection Bureau (CFPB) proposed a rule on Thursday seeking to address predatory loaning practices by “payday” and other high-interest lenders. The 1,000-plus-page regulation suggests two policies of note.
First, the agency proposed that those lending short-term, pay-day loans conduct a “full-payment test,” requiring lenders to “make an upfront determination of a consumer’s ability to repay the loan” without having to constantly renew the loan.
