New federal safeguards for customers of payday lenders are poised to be eliminated by the Consumer Financial Protection Bureau as the Trump administration curbs the reach of an agency it has long criticized.
Payday lenders, auto title lenders and certain installment lenders would not have to determine a borrower’s ability to repay the high-interest rate, short-term loans under a proposed rule issued Feb. 6 by CFPB Director Kathleen Kraninger. Those changes would significantly overhaul regulations that had been put in place by former Director Richard Cordray, an Obama-era appointee, in October 2017.
The Republican-led CFPB determined that there was “insufficient...
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(This story was updated with comments from the Community Financial Services Association of America and the Consumer Federation of America)