Category: CFPB

08
Jul

CFPB Update: Payday, Vehicle Title, & Installment Lending Rule

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CFPB Update: Payday, Vehicle Title, and High-Cost Installment Lending Rule: Payment-Related Requirements

Small Entity Compliance Guide

Table of contents

1. Introduction

1. Scope and focus of this guide

2. A brief summary of Payday Lending Rule’s payment-related requirements, effective date, and the compliance date

3. Use of examples in this guide

4. Additional implementation resources

2. Covered loans

1. Covered short-term loans

2. Covered longer-term balloon-payment loans

3. Covered longer-term loans

4. Exclusions from coverage

5. Conditional exemptions

3. Lenders and service providers under the Payday Lending Rule

1. Lenders

2. Service providers.

4. Prohibited payment transfer attempts

1. Payment transfers

2. Conditional exclusion for certain transfers made by an account-holding institution

3. Exception for additional payment transfers authorized by the consumer in a new and specific authorization

4. Single immediate payment transfers at the consumer’s request

SMALL ENTITY COMPLIANCE GUIDE: PAYDAY LENDING RULE: PAYMENT-RELATED REQUIREMENTS

Prohibition on evasion

Disclosure of payment transfer attempts

General form and delivery requirements for notices

1. First payment withdrawal notices

2. Unusual payment withdrawal notices

3. Consumer rights notices

4. Electronic short notices.

Compliance program and record retention

1. Compliance program

2. Record retention

3. Prohibition on evasion

Payday Loans, Title Loans Installment Loans: CFPB

Payday Loans, Title Loans Installment Loans: CFPB

1. Introduction

On October 5, 2017, the Consumer Financial Protection Bureau (Bureau) issued a final rule governing certain personal loans with short-term or balloon-payment structures and certain additional installment loan products (2017 Payday Lending Rule).

On February 6, 2019, the Bureau issued: (1) a notice of proposed rulemaking to reconsider the 2017 Payday Lending Rule’s mandatory underwriting provisions;(1)and (2) a notice of proposed rulemaking to delay the August 19, 2019 compliance date of the mandatory underwriting provisions.

On June 6, 2019, the Bureau issued a final rule (Delay Final Rule)3 finalizing the second of these two proposals. The Delay Final Rule delays the August 1 9, 201 9 compliance date for the 2017 Payday Lending Rule’s mandatory underwriting provisions to November 19, 2020, and makes technical corrections to the 2017 Payday Lending Rule.

This guide uses the term “Payday Lending Rule” or “Rule” to refer to the 2017 Payday Lending Rule as amended by the Delay Final Rule.T he proposed rulemaking does not reconsider the payment-related requirements of the Payday Lending Rule. Thus, this guide highlights information that may be helpful when implementing the payment-related requirements of the Payday Lending Rule. It does not discuss the Rule’s mandatory underwriting provisions. As appropriate, the Bureau will revise this guide to assist.

SMALL ENTITY COMPLIANCE GUIDE: PAYDAY LENDING RULE: PAYMENT-RELATED REQUIREMENTS

An industry with the implementation of the Payday Lending Rule’s mandatory underwriting provisions at a later date. This guide meets the requirements of Section 21 2 of the Small Business Regulatory Enforcement Fairness Act of 1996 with regard to the Payday Lending Rule’s payment-related requirements. This guide is not a substitute for reviewing the Payday Lending Rule. The Payday Lending Rule and its Official Interpretations (also known as the commentary) are the definitive sources of information regarding the Payday Lending Rule’s requirements. The Payday Lending Rule is available.

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07
Jun

Consumers Rejoice! CFPB Issues Final Rule on Payday Loan Underwriting

More good news for USA households as the CFPB recognizes access to credit for all at competitive rates is preferable to zero financial choices!

On June 6, 2019, the Bureau issued a final rule delaying the August 19, 2019 compliance date for the Mandatory Underwriting Provisions of the 2017 Payday Lending Rule to November 19, 2020.

June 6, 2019

Executive Summary of Delay Final Rule’sAmendments to the 2017 payday lending Rule

On June 6, 2019, the Consumer Financial Protection Bureau (Bureau) issued a final rule (Delay Final Rule) delaying the compliance date for the Mandatory Underwriting Provisions of the Bureau’s 2017 rule governing Payday, Vehicle Title, and Certain High-Cost Installment Loans (2017 Payday Lending Rule).

The Delay Final Rule also makes certain technical corrections to the 2017 Payday Lending Rule.

This executive summary provides an overview of the Delay Final Rule but is not a substitute for reviewing the Delay Final Rule itself.

Background On October 5, 2017, the Bureau issued the 2017 Payday Lending Rule to establish regulations for payday loans, vehicle title loans, and certain high-cost installment loans.

The 2017 Payday Lending Rule addressed two discrete topics.

First, it contained a set of provisions with respect to the underwriting of certain covered loans and related reporting and recordkeeping requirements. These provisions are referred to herein as the “Mandatory Underwriting Provisions.”

Second, it contained a set of provisions establishing certain requirements and limitations with respect to attempts to withdraw payments from consumers’ checking or other accounts and related recordkeeping requirements. These provisions are referred to herein as the“Payment Provisions.”

The Bureau also provided an unofficial redline and an executive summary.

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07
Feb

President Trump, Consumers, The PDL Industry & the CFPB Party to the Beat of New Rules

 

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06
Feb

CFPB Proposed “Payday Loan Ability to Repay Rule” Rescind: Great News

The CFPB issued a positive press release today regarding the payday loan industry.

Consumers, lenders, employees, property owners, tax revenue, deregulation, competition… ALL WINNERS!

Washington, D.C. — The Consumer Financial Protection Bureau today is proposing to rescind certain provisions of its 2017 final rule governing “Payday, Vehicle Title, and Certain High-Cost Installment Loans.” Specifically, the Bureau is proposing to rescind the rule’s requirements that lenders make certain underwriting determinations before issuing payday, single-payment vehicle title, and longer-term balloon payment loans. The Bureau is preliminarily finding that rescinding this requirement would increase consumer access to credit.

In October 2018, under the leadership of then-Acting Director Mulvaney, the Bureau announced that it would issue Notice of Proposed Rulemakings (NPRMs) to reconsider the rule’s mandatory underwriting requirements and to address the rule’s compliance date. The proposals the Bureau is releasing today fulfill that commitment.

The Bureau’s proposal suggests there was insufficient evidence and legal support for the mandatory underwriting provisions in the 2017 final rule. Additionally, the Bureau is concerned that these provisions would reduce access to credit and competition in states that have determined that it is in their residents’ interests to be able to use such products, subject to state-law limitations. The NPRM proposing to rescind the mandatory underwriting requirement is open to public comment for 90 days.

In a separate notice issued today, the Bureau is also proposing to delay the August 19, 2019 compliance date for the mandatory underwriting provisions of the 2017 final rule to November 19, 2020. The NPRM proposing the delay is open to public comment for 30 days.

Today’s NPRMs do not propose to reconsider the provisions of the 2017 final rule governing payments, including reconsidering the scope of their coverage.  The payment provisions prohibit payday and certain other lenders from making a new attempt to withdraw funds from an account where two consecutive attempts have failed unless consumers consent to further withdrawals. The payment provisions also require such lenders to provide consumers with written notice before making their first attempt to withdraw payment from their accounts and before subsequent attempts that involve different dates, amounts, or payment channels. These provisions are intended to increase consumer protections from harm associated with lenders’ payment practices.

“The Bureau will evaluate the comments, weigh the evidence, and then make its decision,” said Kathy Kraninger, Director of the Consumer Financial Protection Bureau. “In the meantime, I look forward to working with fellow state and federal regulators to enforce the law against bad actors and encourage robust market competition to improve access, quality, and cost of credit for consumers.”

The NPRMs can be viewed here: https://files.consumerfinance.gov/f/documents/cfpb_payday_nprm-2019-reconsideration.pdf  and https://files.consumerfinance.gov/f/documents/cfpb_payday_nprm-2019-delay.pdf

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08
Nov

Great News: CFPB Payday Loan Lending Rule Stayed! Opportunities Abundant

Consumers WIN BIG! CFPB payday loan rule shut down!! And DEALS/OPPORTUNITIES are immense today.

Frankly, there has never been a better time to be “lending money to the masses.”

  • Demand for credit by borrowers is huge.
  • Stats are all over the map – depending on the source – but something like 60% of US households do not have access to $1000 cash in an emergency.
  • The big sub-prime lending season is almost upon us.
  • Jobs and ability to pay us back are through the roof.
  • Consumer optimism is sky high.
  • Washington D.C is not likely to devise too many roadblocks that could stifle all this enthusiasm.

THE BIG NEWS TODAY?

U.S. District Judge Lee Yeakel reversed a previous order and grantedContinue Reading..

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