February 11, 2019

On February 6, the federal Consumer Financial Protection Bureau issued proposed changes to federal rules regulating payday lending.  The current rules contain a provision that requires a lender to ensure that a borrower can afford to repay a payday loan prior to issuing it.  This “ability to pay” or “underwriting requirement” standard is a key consumer protection component, and it would be eliminated under the proposed changes.  The CFPB’s web page contains a summary explanation.  A comment period will begin once the proposed changes are published in the Federal Register.