US cracks down on ‘payday’ loans

Regulators say high-interest lending practice has pushed millions of Americans into long cycles of debt.

Financial regulators in the United States have said they are tightening the guidelines on short-term “payday” loans.

Economists believe the high-interest lending practice has pushed millions of Americans into a steady cycle of debt.

Around 11million Americans borrow from these companies, known as payday loan stores.

Al Jazeera’s Tom Ackerman reports from Washington.

Source: Al Jazeera