On October 5, 2017, the CFPB released its final rule for short-term loans. The nearly 1,700 page rule appears to follow the proposed short-term lending rule with several notable changes. Most notably, the CFPB did not finalize rules relating to underwriting requirements for long-term loans that do not have balloon payments. Read our client alert.
On September 6, 2017, the CFPB announced that it has taken action against an online lead aggregator. The allegations revolved around the company’s selling personal information of consumers who were interested in small-dollar or installment loans to online lenders. It was alleged that the loans ultimately offered to consumers were, or were likely to be, void… Read More
Hope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration… Read More
As we previously reported in our June 3, 2016 client alert, the CFPB has issued a Notice of Proposed Rulemaking for short-term loans. In this follow-up alert, we take a closer look at the Proposed Rule and its implications for consumer lending generally. Although the Proposed Rule is often characterized as a “payday loan rule,”… Read More
On June 2, 2016, the CFPB released its long-anticipated Notice of Proposed Rulemaking (“Proposed Rule”) on short-term lending. Although the rulemaking has been characterized as the “payday loan rule,” it is sweeping in terms of the products covered and the limitations it would impose on the short-term consumer lending industry generally. The Proposed Rule is… Read More
The CFPB released a report entitled “Online Payday Loan Payments” (“Report”) on April 20, 2016. The Report examined short-term, small-dollar loans (i.e., payday loans) originated by online lenders during an 18-month period in 2011 and 2012. The CFPB examined the costs that may be incurred in connection with online short-term loans due to overdraft or… Read More
On April 7, 2016, Sen. Jeff Merkley (D-OR) introduced the “Stopping Abuse and Fraud in Electronic Lending Act of 2016,” or “SAFE Lending Act of 2016,” amending the Truth in Lending Act (“TILA”) and the Electronic Fund Transfer Act (“EFTA”) to include new limitations on small-dollar loans and prepaid cards. S. 2760 is cosponsored by… Read More
In an April 8, 2016 letter to Richard Cordray, Director of the Consumer Financial Protection Bureau (“CFPB,” or “Bureau”), Representatives Randy Neugebauer (R-TX) and Mick Mulvaney (R-SC) requested that the Bureau convene a forum of state and tribal officials to discuss their perspectives and experiences with regulating short-term, small-dollar credit products, prior to issuance of… Read More
On February 23, 2016, CFPB Director Richard Cordray signaled that the Bureau’s anticipated rulemaking on short-term lending is likely to closely resemble its March 2015 “Outline of Proposals Under Consideration and Alternatives Considered” for regulating the payday, or short-term lending market and may provide a safe harbor approach. Read our client alert.
Just in time for the holidays, the CFPB released its Fall 2015 rulemaking agenda on Friday, November 20. The agenda does not include any major surprises, but it does slightly revise the projected timeline for several highly anticipated rulemaking activities. This alert lays out the highlights to consider between doses of turkey, football, and family…. Read More
June is crowded with celebrations. It feels like a Tokyo subway. June is the month of weddings, graduations, flag days, and dad daze. June 15 is the 800th anniversary of the Magna Carta. This month we acclaim Summer Solstice, Gay Pride Month, and National Aquarium Month. And who could forget National Accordion Awareness Month? Seriously?… Read More
On June 18, 2015, the CFPB will hold a public meeting of the Consumer Advisory Board to discuss trends and themes in the consumer finance market place. In particular, the agenda will include the Bureau’s recent proposal to regulate payday loans, auto-title loans, and certain longer-term credit products. As we’ve previously reported, the Bureau is… Read More
At a field hearing in Richmond, Virginia on March 26, the Consumer Financial Protection Bureau (CFPB) outlined the proposal it is considering to regulate payday lending. The proposal would cover short- and long-term payday loans, as well as vehicle title loans, deposit advance products, and certain high-cost installment and open-end loans. The CFPB views these… Read More
According to a report in The New York Times’ Dealbook, the payday lending regulations the Consumer Financial Protection Bureau is drafting would govern a broader range of short-term loans than some may like, with car title loans and installment loans falling under the guidelines, and would create measures aimed at curbing what the Bureau has… Read More