July 7, 2020
Today, July 7, 2020, the Consumer Financial Protection Bureau finalized a 2019 proposal to rescind various provisions of its November 2017 Final Rule governing Payday, Vehicle Title, and Certain High-Cost Installment Loans ("2017 Final Rule"). The Bureau rescinded the 2017 Final Rule's ability to repay and underwriting requirements. The Bureau also rescinded certain exemptions, definitions, reporting, and recordkeeping requirements related to those ability to repay and underwriting provisions.
The Bureau ratified the Payment Provisions in their entirety, without revision. To assist small dollar lenders in complying with these Provisions, the Bureau issued guidance clarifying the Provisions' scope and providing assistance with compliance.
The compliance date for the Payment Provisions was August 19, 2019. This date has been stayed by the U.S. District Court for the Western District of Texas in connection with a pending case between the Bureau and trade groups. However, this stay could be lifted at any time.
The Bureau also denied a petition to engage in rulemaking to exclude debit and prepaid cards from the Payment Provisions.
The Bureau has not finalized its other proposal seeking comment on whether the Bureau should delay the August 19, 2019, compliance date for these portions of the 2017 Final Rule.