The Consumer Financial Protection Bureau proposed new regulations Thursday to protect consumers from payday, auto title and other high-cost loans. The so-called "debt trap" loans can carry annual interest rates of over 300 percent, in addition to other fees and penalties. The new rules would require lenders to verify a borrower's ability to repay and prohibit repeated short-term borrowing. Critics say the rules would hurt consumers who need payday loans to manage budget shortfalls. We discuss the rules and their potential impact on California consumers.
A Video from the Consumer Financial Protection Bureau