The federal Consumer Financial Protection Bureau is considering new, complex regulations on short-term, high interest payday loans. The lenders, often the only ones to make loans to low-income people, are accused of putting people in an extended debt trap. When borrowers can't pay the principle and fees, they borrow again and then again, leaving them in a debt trap that is impossible to pay. New regulations will force lenders to prove borrowers have the resources to pay back the loans, and prohibit or limit rollovers, according to the Washington Times.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
