The new rules proposed by the Consumer Finance Protection Bureau are expected to require lenders to verify key information from prospective borrowers, such as their income, borrowing history and whether they can afford the loan payments. The bureau released a draft of the rules last year for comment and is expected to release the final version this month. Diane Standaert, a payday loan expert for the Center for Responsible Lending, a North Carolina advocate for reform, calls the rule “a significant first step” that recognizes the debt trap the short-term, high-interest loans can create for low-income people.
