The new rule forces lenders to to assess whether borrowers can repay the loans and limits rollovers, where customers take out new loans to repay old ones; the new rule is likely to face legal challenges and is primarily focused on loans under 45 days. Source
Payday lending has always had a place in financial services as they do offer credit to those who are shut...
Recent research suggests that payday lenders are marketing directly to consumers who are seeking financial help due to the pandemic;...
Almost 800,000 U.S. government workers are out of work due to the shutdown and high cost, short term lenders are...
In 2017 the CFPB saw a ton of regulation and a battle for the successor to former director Richard Cordray; this coming year could be even more tumultuous as acting director Mick Mulvaney looks to undo many of the regulations Cordray put in place and the ensuing court battle over who is the rightful director; recent rule like the arbitration rule have been reversed and they payday lending regulation could be next to go; with a number of regulations in need or more clarity or a court decision the next 12 months could prove crucial for the future of the agency. Source.
While writing in his weekly Forbes Column Ron Shevlin of Cornerstone Advisors says on-demand pay or earned wage access services...
When the CFPB was first formed the mission was to better protect consumers from financial products that did not suit...
Payday lenders have mobilized their customers in a bid to help them put pressure on the CFPB to rollback some...
News of CFPB Director Cordray’s departure could see regulations on payday lenders lessened; one of Director Corday’s main missions was to crack down on predatory lenders; Director Cordray plans to leave at the end of the months and no long term successor has been chosen yet. Source.
Acting CFPB Head Mick Mulvaney said he thought the payday lending rule was too far along for the agency to change but that he supports a congressional rollback; the Congressional Review Act gives Congress 60 days to nullify a regulation; Mr. Mulvaney is currently involved in a dispute over whether or not he can run the agency on an interim basis and he said he anticipates staying for 5 to 7 months. Source.