New laws for Pay Day Loans

The Consumer Financial Protection Bureau is looking at placing new restrictions on Pay Day loan lenders. I want to urge you to never deal with a Pay Day lender.  I have dealt with these lenders, and have lost a lot of money.  Now if you know that you will get some money in 30 days, you can apply for a Pay Day loan.  A Pay Day loan is good for emergencies.  If you need 500.00 dollars for rent or mortgage, utility, car payment, repairs, or medial bills, you can use a Pay Day lender.  You have to pay this lender back within 30 days, or you will lose a lot of money.  Do not a get a loan like this if you need more than 30days to pay off the loan.   This is why it is important to find alternative ways to make money. If you have more than one way of making money, you will not fall into a trap of a Pay Day lender.  Hopefully these new restrictions will help borrowers who are dealing with Pay Day Lenders.  The new restrictions that the Consumer Financial Protection Bureau is proposing are:

  1. Making sure that the borrowers can afford to pay off a loan. I want to reiterate my statement to make sure that you can pay off this loan within 30 days.
  2. End the “debt trap” cycle. This means that lender will have more restrictions on refinancing.
  3. Regulate penalty fees. This means that the lender has to notify the borrower before trying to withdraw money from their checking or savings accounts. 

Please follow the new restrictions on Pay Day lenders, so you will know you rights when it comes to your Pay Day loan.

References

http://money.cnn.com/2016/06/02/pf/cfpb-payday-loan-proposed-rules/index.html?iid=SF_LN

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