Removing Barriers Blog

CFPB Delays Payday Rule’s Underwriting Requirements
Posted June 06, 2019 by CUNA Advocacy

The CFPB issued a final rule to delay the August 19, 2019 compliance date for the mandatory underwriting provisions of the 2017 Payday Rule. Under the final rule, compliance with these provisions is pushed back to November 19, 2020.

In addition to the delay, the Bureau is also making certain technical corrections to address errors in other provisions of the rule.  The Bureau also released several resources for those interested in the compliance delay final rule, including a table of contents and an unofficial redline.

CUNA was supportive of the proposed delay in comments submitted to the Bureau in March 2019 but also called on the Bureau to delay the entire rule and offered recommendations on the Bureau’s overall approach to regulating the payday lending market.

In a related development, a Texas federal district court considering a challenge to the CFPB’s 2017 Payday Rule issued an order continuing a stay of that litigation and the August 19, 2019 compliance date for the rule’s mandatory underwriting provisions and payments provisions.  Parties to the litigation are expected to deliver a joint status report to the court in early August.