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§ 1041.4 Identification of unfair and abusive practice.*

Effective October 20, 2020, this section is removed and reserved.

It is an unfair and abusive practice for a lender to make covered short-term loans or covered longer-term balloon-payment loans without reasonably determining that the consumers will have the ability to repay the loans according to their terms.

Official Interpretation

Section 1041.4—Identification of Unfair and Abusive Practice

1. General. A lender who complies with §1041.5 in making a covered short-term loan or a covered longer-term balloon-payment loan has not engaged in the unfair and abusive practice under §1041.4. A lender who complies with §1041.6 in making a covered short-term loan has not committed the unfair and abusive practice under §1041.4 and is not subject to §1041.5.

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