[The Consumer Financial Protection Bureau proposed rescinding the rule that required lenders who provided Payday advances, Vehicle Title loans, and other Certain High-Cost Installment Loans, to make an effort to find out whether borrowers could afford to pay back the loans, and avoid the revolving door where interest rates are as high as 400% according to the average APR.]
The Bureau is worried that these arrangements would decrease access to credit and rivalry in states that have confirmed that it is to their greatest advantage's to almost certainly utilize such items, subject to state-law constraints," the organization said in its announcement.
An alternative that is less risky is a collateral loan. For example, with a pawn shop, you actually bring your collateral to them and they hold on to it until the loan is repaid. If you can’t pay them back, they simply put the item up for sale in their shop.
To learn more about pawn brokers click here!
Trump Administration Will Roll Back Obama-era Restrictions on Payday Lenders
https://www.nbcnews.com/news/us-news/cfpb-announces-it-will-roll-back-obama-era-restrictions-payday-n968471
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