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Part 1041 - Payday, Vehicle Title, and Certain High-Cost Installment Loans

Reg Letter: 
Issuing Agency: 
Reg info: 
Authority: 12 U.S.C. 5511, 5512, 5514(b), 5531(b), (c), and (d), 5532. Source: 82 FR 54871, Nov. 17, 2017, unless otherwise noted.

"The Payday Lending Rule became effective on January 16, 2018. However,the Rule’s general compliance date is August 19, 2019. Thus, by its terms, the Rule does not require lenders to comply with the Rule’s payment provisions or the related compliance program and record retention requirements until August 19, 2019. The compliance date, however, was stayed pursuant to a court order issued in Community Financial Services Association v. CFPB, No. 1:18-cv-00295 (W.D. Tex. Nov. 6, 2018). As a result, lenders have no obligation to comply with the Rule until the court-ordered stay is lifted." (Small entity compliance guide for the rule)

The CFPB rescinded the mandatory underwriting provisions of the rule effective October 20, 2020, and ratified the remaining provisions. These changes have been posted in our Regulations pages.

The U.S. District Court for the Western District of Texas issued a summary judgment in favor of the CFPB and lifted its stay of the effective date, but ordered that the effective date be postponed to June 13, 2022. The plaintiffs in the case have indicated they intend to appeal the District Court's order.

The CFPB has released an updated Small Entity Compliance Guide for the payment provisions of the rule, and FAQs.

For a table of Federal Register documents affecting this regulation, click HERE

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