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Borrowers also default more often when they get loans online rather than from a brick-and-mortar loan shop, the study said. Regulators with the Consumer Financial Protection Bureau are writing the first federal rules for payday lenders, The Wall Street Journal reported earlier this week. Under the Dodd-Frank financial reform act, the CFPB has the authority to regulate payday lenders, whether theyre based on Main Street or icici personal loan payment Internet, and the agencys rules are expected to apply to Internet loan companies in addition to physical loan shops.
The CFPB declined to comment for this article. People who borrow money from online payday lenders icici personal loan payment more likely to default than those who borrow from storefront payday lenders, according to a recent report from Pew Charitable Trusts.
Though there is not yet a federal law prohibiting the practice, states have historically regulated payday lending. In a payday loan shop, the business state license is clearly on display. But on the Internet, its harder to tell if a company has a state license. To find that out, consumers have to read the fine print on a lenders website. If theyre not licensed, lenders may not be obeying the law.