Statement on Supervisory and Enforcement Practices Regarding Certain Large Loans Under the Regulations for Payday, Vehicle Title, and Certain High-Cost Installment Loans
In 2017, the Bureau issued a final rule (Rule) establishing consumer-protection regulations for payday loans, vehicle title loans, and certain high-cost installment loans. As issued, the Rule had two primary parts – the “Mandatory Underwriting Provisions” and the “Payment Provisions.” On July 7, 2020, the Bureau amended the Rule by revoking the Mandatory Underwriting Provisions. The Bureau has not amended the Payment Provisions of the Rule, which establish certain requirements and limitations with respect to attempts to withdraw payments from consumers’ checking or other accounts, and related recordkeeping requirements. As of the release of this Statement, the Rule, including the Payment Provisions, has been stayed by a federal district court.
The Bureau has also indicated that it intends to continue to monitor and assess the efficacy and application of the Payment Provisions, including the scope of those provisions, and to examine them further at a later date. This Statement addresses the Bureau’s intentions and priorities regarding supervision and enforcement of certain aspects of the Payment Provisions of the Rule with respect to certain large loans.