Removing Barriers Blog

CFPB Issues Final Rule on Payday Lending
Posted July 07, 2020 by Chandler Schuette

The CFPB issued a final rule rescinding the mandatory underwriting provisions of the 2017 rule after re-evaluating the legal and evidentiary bases for these provisions and finding them to be insufficient. The final rule does not rescind or alter the payments provisions of the 2017 rule.

The Bureau stated it intends to move forward with implementing the payments provisions of the 2017 final rule, including a provision that prohibits lenders from making a new attempt to withdraw funds from an account where two consecutive attempts have failed unless consumers consent to further withdrawals. The payment provisions also require lenders of covered products to provide consumers with written notice before making their first attempt to withdraw payment from their accounts and before subsequent attempts that involve different dates, amounts, or payment channels.

The Bureau also issued guidance clarifying the payments provisions’ scope and assisting lenders in complying with those provisions.