New protections against payday loan debt traps

The CFPB’s new rule will stop payday loan debt traps by requiring lenders to take steps to make sure people can repay their loans. 

The rule will also prevent lenders from attempting to collect payment from people’s bank accounts in ways that may rack up excessive fees. Our new debt trap protections will apply to certain small dollar loans including payday loans and certain vehicle title loans.

Our new rule sends consumers to this link for more information. We will update this page with additional information for consumers 30 days before the effective rule date.


Information for financial service providers

Once the regulation is in place, we will provide support and resources to help financial service providers understand and comply with the rule.

Read the summary of the rule

Read the final rule

Key milestones

DATE MILESTONE

Apr 24, 2013

CFPB issued a white paper entitled Payday Loans and Deposit Advance Products.

Nov 2013

CFPB begins accepting complaints from borrowers encountering problems with payday loans.
Mar 25, 2014

CFPB issued a report entitled CFPB Data Point: Payday Lending.

Mar 26, 2015

CFPB announces an outline of a proposal entitled Small Business Advisory Review Panel for Potential Rulemakings for Payday, Vehicle Title, and Similar Loans.

Apr 29, 2015

CFPB convened a Small Business Review Panel to meet with small entity representatives that would be subject to the rule.

Jun 25, 2015

The final report of the Small Business Review Panel on CFPB’s Rulemaking on Payday, Vehicle Title, and Similar Loans was published.

Apr 20, 2016

CFPB issued a report entitled Online Payday Loan Payments.

May 18, 2016

CFPB issued a report entitled Single-Payment Vehicle Title Lending.

Jun 2, 2016

CFPB issued a report entitled Supplemental findings on payday, payday installment, and vehicle title loans, and deposit advance products.

Jun 2, 2016

CFPB issued a Request for Information on Payday Loans, Vehicle Title Loans, Installment Loans, and Open-End Lines of Credit.

Jun 2, 2016

CFPB issued a proposed rule entitled Payday, Vehicle Title, and Certain High-Cost Installment Loans. The CFPB also invited public comment on that proposal.

Oct 5, 2017

CFPB issued a final rule entitled Payday, Vehicle Title, and Certain High-Cost Installment Loans.