CFPB's Delay of Payday Lending Underwriting Rules

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Most provisions of the Payday Lending Rule have a compliance date of Aug. 19, 2019. The Payday Lending Rule addresses two distinct topics: 1) mandatory underwriting requirements; and 2) requirements and limitations on attempts to withdraw loan payments from consumers’ checking or other accounts.  

In February 2019, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule to rescind the mandatory underwriting provisions and leave in place the loan payment provisions.

The bureau also proposed to delay the compliance date of the underwriting provisions in order to save industry stakeholders implementation costs and efforts for portions of the rule that the CFPB is reconsidering and may ultimately rescind. 

On June 5, 2019, the CFPB delayed the rule’s compliance date for the mandatory underwriting provisions for 15 months, from Aug. 19, 2019 – Nov. 19, 2020.

The bureau has published resources to assist stakeholders in understanding the changes, including an unofficial redline version of the rule that highlights provisions of the rule that are delayed.

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