CFPB to Eliminate Underwriting Requirements Effecting Payday Lending

We learned in October that the CFPB was revisiting their ability to repay provisions in the small dollar lending rule; sources are now saying that the CFPB is expected to remove these provisions completely; the current rule requires lenders to verify a borrower’s income, debts and other spending to assess whether they have the ability to repay credit while still meeting their current needs; the change however would have a negative effect on consumers as this type of lending can often lead to a debt spiral. Source

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