The CFPB Consumer Financial Protection Bureau & the Payday Loan Industry
Payday loans, auto title loans, and similar lending products: update from The CFPB
We’ve written often here about the issue of payday loan State’s rights versus the Fed’s and the CFPB.
The CFPB issued an update on their website regarding proposed rulemaking for car title loans, payday loans, installment loans, line-of-credit loans and related loan products made to consumers in the U.S.
Here’s the the CFPB release in full including 3 links to their “research” and “studies.” Take a deep breath and hold your nose…
The CFPB press release and website Post specifically state:
“The Bureau is in the process of developing a Notice of Proposed Rulemaking to address concerns in markets for payday, auto title, and similar lending products. The Bureau is particularly concerned that lenders are offering these products without assessing the consumer’s ability to repay, thereby forcing consumers to choose between reborrowing, defaulting, or falling behind on other obligations. We are also concerned about certain payment collection practices that can subject consumers to substantial fees and increase risk of account closure.”
The CFPB announcement went on to say:
“The Notice of Proposed Rulemaking will build on feedback we have received from small businesses and other stakeholders after releasing an outline of proposals under consideration last spring for purposes of the Small Business Regulatory Enforcement Fairness Act process. The Bureau will also publish results of further research it has been conducting into these markets in connection with the rulemaking proposal. The Bureau previously released a white paper and a report summarizing some of its research on some of these products. We expect to release the rulemaking proposal in first quarter 2016.”
Here’s a direct link to the CFPB’s “Small Business Regulatory Enforcement Act process (CFPB 1)
And a link to the previous CFPB Payday Loan White Paper, “Payday Loans and Deposit Advance Products: (CFPB 2)
And the CFPB Report, “CFPB Data Point”: (CFPB 3)
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