The Consumer Financial Protection Bureau found in 2014 that the number of payday lenders exceeded McDonalds restaurant locations in the United States ‒ 15,766 to 14,350, respectively. Thus, it released a set of proposed guidelines June 1, 2016, for this growing lending segment. The initiative is open for public commentary until Sept. 14, 2016.
Addressing "payday, vehicle title and certain high-cost installment loans," the 1,334-page proposal provides guidance for lenders that it claims have unfairly exploited millions of U.S. citizens, the CFPB noted. "Covered loans are typically used by consumers who are living paycheck to paycheck, have little to no access to other credit products, and seek funds to meet recurring or one-time expenses," the bureau's report stated.