Yesterday, the CFPB issued its long-awaited re-write of its payday lending rule.
The headline is that the new proposed regulation eliminates the original requirement that lenders would employ an “ability to repay” test that verifies borrower income and debt before a payday loan is made. CFPB yesterday said the “ability to repay” requirement would have limited consumer access to the product. CFPB also pushed back the effective date to November 2020.
Of interest is the reaction by consumer groups and Congressional Democrats. The strongest response was from Chairwoman Maxine Waters, who called for the new proposed rule to be rescinded less than 2 hours after it was issued.