WASHINGTON (Reuters) – profits for the $6 billion cash advance industry will shrivel under a brand new U.S. rule limiting lenders’ ability to benefit from high-interest, short-term loans, and much regarding the company could proceed to small banking institutions, based on the country’s customer watchdog that is financial.

The customer Financial Protection Bureau (CFPB) released a regulation on Thursday needing loan providers to see whether borrowers can repay their debts and capping how many loans loan providers will make up to a debtor.

The rule that is long-anticipated must survive two major challenges before becoming effective in 2019.