Payday loan rules need fixing, Senate Democrats tell consumer bureau

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The proposed sweeping new rules on payday loans need to be strengthened before going into effect, Senate Democrats told the Consumer Financial Protection Bureau Wednesday.

The regulations, proposed in June, would require lenders to determine that borrowers have the ability to repay short-term, small loans, along with other measures meant to prevent hard-up customers from falling into a “debt trap” of successive expensive loans.

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