WASHINGTON–The Bureau of Consumer Financial Protection will “reconsider” its pending rules on payday loans as part of a new proposal.
Specifically, the BCFP said it will be limiting its review to just the “ability-to-repay provisions” and not the payments provisions of its proposal.
The “ability-to-repay provisions have much greater consequences for both consumers and industry than the payment provisions,” the agency said.
The Bureau’s payday loan rule, officially known as the Payday, Vehicle Title, and Certain High-Cost Installment Loans rules, are to become effective Aug. 19, 2019 after having been finalized in 2017 under former Bureau Director Richard Cordray.
The payday lending industry has been aggressive in fighting back against the rule and pushing for delays in the effective date, including the filing of lawsuits. One federal court has already rejected a payday lending group’s litigation seeking a delay.