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Payday advances, automobile name loans face tough crackdown that is new

Payday advances will likely be seriously limited under brand new guidelines being proposed by federal regulators today.

Mainly, the principles will need loan providers to ensure customers are able to settle the loans and can need loan providers to report loans up to a credit-bureau-like entity to monitor exactly how many loans are outstanding and simply how much is owed.

The rules proposed by the customer Financial Protection Bureau will likely not ban all pay day loans, automobile title loans or any other high-cost loans.

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