 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: Regulating the Payday Loan Industry\n-----------------------------------\nA payday loan is a small-dollar, high-cost loan borrowers often use to help make ends meet until their next paycheck. The loans typically feature short payback terms of two to four weeks, with heavy financial consequences if full repayment is not made on time. These loans often cause problems for consumers because of their expensive rates, high fees and balloon payment demands. (A balloon payment is a large payment due all at once at the end of the loan.)\nIn 2017, the CFPB enacted new rules to make payday loans safer for consumers. The final payday rule issued by the CFPB called payday-style loans \"unfair and abusive\" unless lenders took reasonable steps to make sure potential borrowers could afford to repay the loans as agreed. Some of those required steps have been removed under the new changes.\nThe CFPB's latest proposal comes on the heels of an April 2018 lawsuit in which two payday-lending trade groups sued the federal government in an effort to stop the rule they claim would destroy their business model. END