Members of the Consumer Financial Protection Bureau’s (CFPB) Consumer Advisory Board have asked the agency to draft rules to enhance consumer protection from payday loans.
The board asked the FCPB to consider mandating longer repayment periods, requiring lenders to verify a borrower’s ability to repay and limiting the times a borrower is allowed to roll over small-dollar loans, reports BankCreditNews.com.
“We want to make sure that consumers can get the credit they need without jeopardizing or undermining their finances. Debt traps should not be part of their financial futures,” said CFPB Director Richard Cordray.
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