Today, the CFPB released a proposed rule aimed at ending payday debt traps by requiring lenders to take steps to make sure consumers have the ability to repay their loans. The proposed rule would also cut off repeated debit attempts that rack up fees. These strong proposed protections would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment and open-end loans. The CFPB is also launching an inquiry into other products and practices that may harm consumers facing cash shortfalls.
Read the rule.
ABIA is currently reviewing the rule. If you would like submit comments or join the ABIA CFPB Task Force, please contact Sarah Ferman.