PaydayLoanIndustryBlog.com      702-208-6736

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

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.

[pdf-embedder url=”https://paydayloanindustryblog.com/wp-content/uploads/2019/07/cfpb_payday_small-entity-compliance-guide-07-08-19.pdf”]

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.

Click Here: $337.00 Immediate PDF Download

Click this link Course #1 for a complete Table of Contents.