The agency proposed a new regulation that would better protect consumers from the industry’s worst practices while Cordray was at the CFPB.

The guideline will have needed payday lenders to make sure that a consumer could really pay for a payday loan before issuing it.

The guideline would also provide restricted how many times a loan provider could “roll over” pay day loans — thus which makes it more challenging when it comes to lower-income customers whom make up the the greater part of payday borrowers to have caught in endless rounds of revolving financial obligation. Continue reading