Oct. 7 (UPI) -- The Consumer Financial Protection Bureau this week finalized rules curtailing payday loans, which can leave low-income workers facing staggering interest payments.
The payday and short-term loan industry thrives by offering low-income workers an advance on their paycheck in the form of a loan, usually less than $500, which comes with a high interest rate and is usually due within two weeks, or on the borrower's next payday. Most times, the borrowers are required to give the lender authority to remove funds from their bank accounts or write a postdated check to cover the amount due. If borrowers don't have the money in their account when the loan comes due, the amount rolls over and accrues even higher interest rates and late fees.