Sentences with phrase «consumer in a debt trap»

Not exact matches

«The rule is an important first step and will benefit some consumers who need relief the most, but a great deal of work is still needed to ensure that American families are no longer ensnared in the debt trap of high interest, abusive loans,» Michael Best, director of advocacy outreach at Consumer Federation of America, said in a statement.

Payday loans are almost never a smart choice, since the high - interest rates and short repayment periods can quickly trap consumers in a debt cycle.

March 29, 2015 • The federal government is moving to reign in the payday loan industry, which critics say traps consumers in a damaging cycle of debt.

Oftentimes, a successful «predatory» loan results in a debt trap for the consumer, leaving them with harmful fees and mounting debt payments under their belts.

These ordinances are designed to help protect people from predatory loans that attempt to trap consumers in a cycle of debt.

They have their system down to a science, and it's all aimed at making the banks rich and trapping consumers in debt.

That's how many consumers become trapped in a never - ending cycle of mounting debt.

However, the Consumer Financial Protection Bureau, a federal agency created in 2008, issued a new rule in October 2017 to stop «debt traps.»

Unfortunately, these types of loans can become a debt trap in which the consumer will continually refinance their debt to the lender at an extremely high interest rate.

The Consumer Financial Protection Bureau passed landmark rules in 2016 which aim to end practices that cause short - term loans to become debt traps.