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” The same section of the Senate committee report included a description of the basic features of payday loans and the problems associated with them, specifically noting that many consumers are unable to repay the loans while meeting their other obligations and that many borrowers reborrow which results in a “perpetual debt treadmill.
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you interest on the overdue amount at the interest rate specified in the agreement.
The Bureau proposes the additional requirements in § 1041.
The provision relating to covered short-term loans would apply to lenders who make those loans.
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The requirement to consult the lender's own records would be slightly different in duration compared to an ATR Approach loan, since the lender would need to check the records for the prior 12 months.
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