New regulations on payday lending could shutter businesses

By Joseph Lawler

Published February 8, 2016 5:01am ET

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New regulations on payday lending could shutter businesses — Trouble begins because 80 percent of payday loans are rolled over or followed by another loan within 14 days, according to the bureau's research, and half of all loans made are part of a loan "sequence" at least 10 loans. (AP Photo/Vik Jolly) | Vik Jolly

Payday lenders will face a defining moment when the Obama administration releases new regulations for their industry in the coming months. Trade groups and members of Congress say those regs could shutter many businesses.

The Consumer Financial Protection Bureau is expected to propose a rule this month or next to protect hard-up borrowers from falling into a “spiral” of mounting, expensive payday debt.

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CFPB Dennis Ross Finance Joseph Lawler Minusextra Payday Loans