On August 7, the Texas attorney general’s office received a request for a payday-related opinion. The request asks about “the authority of a credit services organization to assist a consumer with obtaining an extension of consumer credit in a form other than a deferred presentment transaction or motor vehicle title loan.” It appears that some lenders wish to begin offering new loan products. Interested cities can submit comments on the request electronically by submitting them to email@example.com.
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.