The CFPB is considering proposing rules aimed at helping payday borrowers by requiring lenders to ensure consumers can repay their loans and by restricting lenders from attempting to collect payment from consumers’ bank accounts in ways that may incur fees. The proposal being considered would apply to payday loans, vehicle title loans, deposit advance products and certain high-cost installment loans and open-end loans.
The Bureau has published an outline of the proposed rule in preparation for convening a Small Business Review Panel to gather feedback on the possible effect of this rule on small lenders, a required step in the rule-making process. The proposals under consideration cover both short-term and longer-term credit products.
Read the news release.
Read an outline of the proposal under consideration.