British regulators announced plans yesterday to impose stiff new rules next year for payday lenders, whose business has grown sharply since the financial crisis, the New York Times DealBook blog reported yesterday. The new rules in Britain will include requirements that lenders properly evaluate whether a consumer can afford such a loan and to limit the number of times the loan can be rolled over. Lenders also will be required to provide consumers with sources of debt advice before refinancing. Payday lenders also will be required to include risk warnings in advertisements, which have proliferated on British daytime television, many offering loans of up to £1,000 ($1,620) at a time. Firms will face fines for violations of the rules.
