The delay in the compliance date of the mandatory underwriting provisions of payday lending rules is reflected in an updated “small entity compliance guide” published by the federal consumer financial protection agency, announced Monday.
The Consumer Financial Protection Bureau (CFPB) said the compliance guide (originally published in February, but updated late last week) summarizes the requirements for its rule titled “Payday, Vehicle Title and Certain High-Cost Installment loans Lending.” The rule was adopted by the agency in 2017.
However, on June 6, the bureau announced it was delaying the Aug. 19 compliance date for mandatory underwriting provisions of the rule, to Nov. 19, 2020. The 15-month delay also made certain corrections, the bureau said, to address “several clerical and non-substantive errors it has identified in other aspects of the Rule.” The delay was made final after a 30-day comment period.
The guide also points out that compliance with the payment-related requirements of the rule are stayed, by order of a federal court in Texas, until the agency “reconsiders” the rule overall. “As a result, lenders have no obligation to comply with the Rule until the court-ordered stay is lifted,” the compliance guide states.