WASHINGTON—The CFPB announced Friday that it will not enforce restrictions on payday lending set to take effect over the weekend.
These regulations, finalized during the first Trump administration, limit how often payday, auto title, and other short-term lenders can access borrowers' bank accounts to prevent rollovers.
Additionally, the rule prohibits lenders from making multiple attempts to withdraw funds after a failed attempt.
Originally finalized in 2020 is scheduled to take effect on March 30, following a delay of many years.
Regarding its decision not to enforce the payday rule, the CFPB stated, “The Bureau will instead keep its enforcement and supervision resources focused on pressing threats to consumers, particularly servicemen and veterans. The Bureau takes this step in the interest of focusing resources on supporting hard-working American taxpayers, servicemen, veterans, and small businesses. The Bureau is further contemplating issuing a notice of proposed rulemaking to narrow the scope of the rule.”
DCUC Responds
"While we respect the CFPB’s vision to better protect consumers, including hardworking taxpayers, servicemembers, veterans, and small businesses, we strongly caution against consideration to reduce or lessen enforcement and/or oversight of these lenders," said DCUC Chief Advocacy Officer Jason Stverak."We've continued to share our concerns on how, more often than not, payday and auto-title lenders have a tendency to target servicemembers—many setting up shop near bases to take advantage of potential financial vulnerabilities that can accompany the military lifecycle. While we respect the CFPB’s authority, we’re concerned that pausing enforcement of these critical protections could put these consumer communities at greater risk and undo hard-earned safeguards against abusive lending practices."
Stverak pointed out defense credit unions already provide safe, affordable alternatives to high-cost loans.
"Because their cooperative mission is to put members first. Placing this type of enforcement in a backseat gives predatory lenders an unfair advantage and makes it harder for responsible credit unions to compete," he said. "For us, following these consumer protection rules isn’t a challenge—it’s how we already operate. The real risk is what happens when bad actors aren’t held accountable, leaving military families more financially vulnerable. As the voice for credit unions serving our military and veteran communities, DCUC remains committed to working with the CFPB and other stakeholders to keep strong protections in place. We’re ready to collaborate and advocate for policies that safeguard the financial well-being of our nation’s heroes—because they deserve nothing less."