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Latest On CFPB Payday Lending Proposal

The Consumer Financial Protection Bureau has  proposed  eliminating the Obama-era regulation that requires payday lenders to ensure borrowers have enough money to pay back high-interest loans before offering them funding. The CFPB said overturning the requirement, (scheduled to go into effect in August) would “increase consumer access to credit”. Consumer activists argued that the proposal would let the industry take advantage of low-income clientele, and both House Financial Services Chair Waters (D-CA) and Senate Banking Committee member Elizabeth Warren (D-MA) urged Director Kathy Kraninger to rescind the  proposal.  Comptroller of the Currency Joseph Ottingsupports the CFPB’s proposal to rescind certain provisions of its rule on payday, vehicle title and certain high-cost installment loans. Otting said the proposal would allow responsible lenders to compete in the small-dollar market.

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