MICROLENDER Finbond’s R525m plan to buy four payday lenders in North America may hit regulatory snags, with an industry association testifying last week that proposed rules would see just a handful of these lenders remaining profitable.Finbond plans to acquire three US payday lenders, as well as one in Canada.CEO Willie van Aardt said the larger US payday lending market presented "much more favourable" regulatory conditions than SA.But that may be about to change, as the US Consumer Financial Protection Bureau prepares to impose rules aimed at freeing consumers from "payday debt traps" and putting a stop to harmful collection practices after years of research.The Community Financial Services Association of America, which represents payday lenders, commissioned an independent report on the proposals, which found only 16% of the lenders analysed would remain profitable if they were implemented."If implemented as proposed, the new regulations would be a major headwind for the US payday...
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