Calling payday loans “the most predatory forms of credit on the market,” Tennessee Citizen Action commended a proposal from the Consumer Financial Protection Bureau that seeks to strengthen consumer protections within the payday and car title industries.
Tennessee has among the highest number of payday lenders, with more than 1,000 payday stores, according to a Journal of Economics and Business 2016 report. Interest rates for the short-term loans are 390 percent or higher, which along with fees, often lock consumers into long-term, expensive debt, according to the CFPB.
The CFPB’s proposal, released Thursday, requires lenders to assess borrowers’ income and expenses to ensure they are able to repay a loan without missing other critical payments, such as food and utilities.
Read More: http://www.tennessean.com/story/money/2016/06/02/payday-lenders-under-attack-tennessee/85292526/