CFPB Issues Payday Lending Rule
On October 5, the Consumer Financial Protection Bureau (CFPB) issued a final rule on payday, vehicle title, and high-cost installment loans. The final rule and related information came in at a whopping 1,690 pages. The final rule establishes that it is an unfair and abusive practice for a lender to make payday and vehicle title loans without reasonably determining that the consumer has the ability to repay the loan according to the loan terms. The final rule also makes it unfair and abusive for a lender to attempt to withdraw payment from a consumer’s account after two consecutive payment attempts have failed, unless the consumer specifically provides new authorization to do so.