CFPB Problems Amendments to Payday, Car Title, and Certain High-Cost Installment Loans Rule

CFPB Problems Amendments to Payday, Car Title, and Certain High-Cost Installment Loans Rule

REGULATORY ALERT

Dear Panels of Directors and Ceos:

On July 22, 2020, the customer Financial Protection Bureau issued a rule that is finalopens brand new screen) amending components regarding the Payday, car Title, and Certain High-Cost Installment Loans Rule, 12 CFR component 1041 (CFPB Payday Rule). Although the CFPB Payday Rule became effective on January 16, 2018, the conformity times are currently stayed pursuant up to a court order issued due to pending litigation. 1 because of this, loan providers aren’t obliged to conform to the guideline before the court-ordered stay is lifted.

The 2020 amendment to the rule rescinds the following july:

  • Requirement of a loan provider to determine a borrower’s ability to settle before generally making a loan that is covered
  • Underwriting requirements in making the determination that is ability-to-repay and
  • Some reporting and recordkeeping requirements. Read More