The nation’s new consumer financial watchdog proposed Wednesday to significantly water down tough pending rules on payday and other short-term loans designed to prevent lenders from taking advantage of cash-strapped Americans.
The proposal by Kathy Kraninger, who became director of the Consumer Financial Protection Bureau in December after being nominated by President Trump, would eliminate key provisions requiring lenders to determine whether borrowers can repay the short-term loans.
Financial industry officials have pushed to change the rules and cheered the announcement. Consumer advocates blasted it as a “gift to the payday loan sharks.”