- The CFPB to Regulate Payday Lending Practices
- March 13, 2015 | Author: Courtney Blowers
- Law Firm: Weltman, Weinberg & Reis Co., L.P.A. - Cleveland Office
- Payday lenders and possibly other short-term loan lenders will soon be subject to federal regulations. Although the Consumer Financial Protection Bureau (“CFPB”) has not released its proposal yet, it is no secret that one is in the works.
We will not know the extent of the rules and exactly what short-term loans the regulations will govern until the CFPB releases its proposal. However, the CFPB will most likely address payday loan interest rates and fees and require that payday lenders adhere to an “ability-to-repay” requirement before extending a loan to a consumer.
The rules could potentially cover more than just the traditional payday loan. It could also cover loans secured by car titles and some installment loans that have a longer life span than the typical two-week payday loan.
To prepare for these changes and to update your policies and procedures contact the litigation department.
Alan Zibel, CFPB Sets Sights on Payday Loans, The Wall Street Journal, Jan. 4, 2015, http://www.wsj.com/articles/cfpb-sets-sights-on-payday-loans-1420410479
Jessica Silver-Greenberg, Consumer Protection Agency Seeks Limits on Payday Lenders, N.Y. Times, February 8, 2015, http://dealbook.nytimes.com/2015/02/08/consumer-protection-agency-seeks-limits-on-payday-lenders/?&under;r=0