Payday Loans are known for rather simple requirements, high availability even for bad credit and with no credit check and by excessive interest rates. These have always been the reasons for strict control of short-term cash advance on behalf of the Government and each state’s authorities. They impose various usury caps on the loan amounts, terms, rates, number of cash advances, etc. And all the previous laws and regulations were aimed at putting tough restrictions, most of which were to come into force in 2020. But will they?
As the latest reports of the Consumer Financial Protection Bureau show there’re going to be some changes in Payday lending legislation in 2020 and these new rules are likely to make short-term loans more interesting for businesses taking into account their interest ahead of the borrowers’ protection.
For example, the Consumer Financial Protection Bureau proposed to eliminate restrictions on the number of consecutive loans and the requirements to verify the customers’ creditworthiness before approving them for the funds.
Besides, the bureau’s new director, Kathleen Kraninger offered to reconsider the “ability to repay” mandate as well.
As we can see, Texas Payday Loan Laws rules have become friendlier to lenders. Businesses appreciated it and are looking forward to more changes intended to halt other restrictions. In their opinion, any limits on urgent cash advances will only lead to more dangerous ways for consumers to get the necessary finances.
Online Lenders Alliance (OLA) also praised these changes in payday lending. They think the new rules will help those most in need of credit have easy access to it. The laws must let the consumers take out safe cash advances from regulated online lenders. Banks are likely to provide Payday Loans as well which will create more competition and consequently better conditions.
All the proposals are going to be under consideration within 90 days after which some final decisions will be made.
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