The payday loan industry could be in for a major overhaul after the Consumer Federal Protection Bureau proposes a new rule Thursday requiring the lenders to make sure borrowers would actually be able to pay off their debt. A 2014 CFPB study found that roughly 62% of payday loans — that can carry annual interest rates up to 390% — go to borrowers who can’t pay down their debt and end up owing more than they initially borrowed. Industry representatives argue the rule would drive borrowers to pawnshops and even more costly lenders.

USA Today 


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