Comments due on proposal to rescind parts of Payday Lending rule
A press release from the Consumer Financial Protection Bureau states that the Bureau is proposing to rescind certain provisions of its 2017 final rule governing “Payday, Vehicle Title, and Certain High-Cost Installment Loans.”
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.