CFPB Acting Director Mulvaney Joins Payday Lenders to Push Pause on Payday Rule
The Consumer Financial Protection Bureau joined two payday lender associations — the Consumer Financial Service Association of America and the Consumer Service Alliance of Texas — in a motion to push pause on pending litigation to block implementation of the CFPB’s payday rule. In the same motion, they sought a delay of the rule’s compliance date of August 19, 2019.
The payday rule requires lenders to either assess a borrower’s ability to repay a loan and still meet his or her other financial obligations or, if they choose to forgo the ability-to-repay assessment, to limit the number of loans per borrower to six in a twelve-month period. It was developed after five years of study and public comment.
“To say we’re disappointed is an understatement,” said Kathleen Lara, Policy Director for Prosperity Indiana. “Hoosiers overwhelmingly support payday lending reform. If the Consumer Financial Protection Bureau will not implement common sense consumer protections, our state lawmakers must take action. Fifteen states now protect their citizens from predatory lending by capping payday loans at 36% APR or less, and the federal government extends this protection to all active duty military personnel. This should be a top priority for Indiana lawmakers next session.”