Payday, Vehicle Title, and Certain High-Cost Installment Loans (rescinding provisions of current rule)

Title:

Payday, Vehicle Title, and Certain High-Cost Installment Loans (rescinding provisions of current rule)

Subject: Payday lending
Agency: CFPB
Status: Proposed rule
Summary:
The Bureau of Consumer Financial Protection (Bureau) is proposing to rescind certain provisions of the regulation promulgated by the Bureau in November 2017 governing Payday, Vehicle Title, and Certain High-Cost Installment Loans (2017 Final Rule or Rule). The provisions of the Rule which the Bureau proposes to rescind provide that it is an unfair and abusive practice for a lender to make a covered short-term or longer-term balloon-payment loan, including payday and vehicle title loans, without reasonably determining that consumers have the ability to repay those loans according to their terms; prescribe mandatory underwriting requirements for making the ability-to-repay determination; exempt certain loans from the mandatory underwriting requirements; and establish related definitions, reporting, and recordkeeping requirements. This proposal is related to another proposal, published separately in this issue of the Federal Register, seeking comment on whether the Bureau should delay the August 19, 2019 compliance date for these portions of the 2017 Final Rule.
Docket: CFPB-2019-0006
Date proposed: February 6, 2019
Comments due date:

May 15, 2019

Final rule effective date:
Rule compliance date:
Agency release:

Consumer Financial Protection Bureau Releases Notices of Proposed Rulemaking on Payday Lending

Related Reg Report item(s):

Report: Shutdown kept CFPB payday lending rule revisions from meeting January release

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