CFPB’s Proposals to Rescind and Delay Portion of Payday Loan Rule Published in Federal Register Feb. 14

press release from the Consumer Financial Protection Bureau (CFPB) stated that the Bureau was proposing to rescind certain provisions of its 2017 final rule governing “Payday, Vehicle Title, and Certain High-Cost Installment Loans.”

Both proposals were published in the Federal Register on February 14. Specifically, the Bureau is proposing to rescind the rule’s requirements that lenders make certain underwriting determinations before issuing payday, single-payment vehicle title, and longer-term balloon payment loans. The CFPB is preliminarily finding that rescinding this requirement would increase consumer access to credit. The Bureau is also proposing to delay the August 19, 2019, compliance date for the mandatory underwriting provisions of the 2017 final rule to November 19, 2020.

Neither of the proposals would reconsider or delay the provisions of the 2017 final rule governing payments, including reconsidering the scope of their coverage. These provisions are intended to increase consumer protections from harm associated with lenders’ payment collection practices.

Click here to access the CFPB’s  “Unofficial Redline of the Reconsideration NPRM’s Proposed Amendments to the Payday Lending Rule”, which provides the changes under consideration. Also published that day was the “Table of Contents for Payday Reconsideration NPRM.”

Click here to view NJCUL’s February 14 recorded webinar on NCUA’s Payday Alternative Loans (PALs) – The CU Solution to Payday Lenders that takes a look at the CFPB ‘Payday’ rule from 2017 and the February 14 proposals. In addition the webinar explains NCUA’s recent proposal on a second version of PALs. All proposals are available for comment.