Payday, Vehicle Title, and Certain High-Cost Installment Loans
The Bureau of Consumer Financial Protection is proposing to rescind mandatory underwriting provisions of the regulation promulgated by the Bureau in November 2017 governing Payday, Vehicle Title, and Certain High-Cost Installment Loans (2017 Final Rule). The provisions of the Rule which the Bureau proposes to rescind (1) provide that it is an unfair and abusive practice for a lender to make a covered short-term or longer-term balloon-payment loan, including payday and vehicle title loans, without reasonably determining that consumers have the ability to repay those loans according to their terms; (2) prescribe mandatory underwriting requirements for making the ability-to-repay determination; (3) exempt certain loans from the underwriting requirements; and (4) establish related definitions, reporting, and recordkeeping requirements. This proposal is related to another proposal seeking comment on whether the Bureau should delay the August 19, 2019 compliance date for these portions of the 2017 Final Rule.
The Bureau is releasing a for this proposal as well as an unofficial, informal to assist industry and other stakeholders in reviewing the changes that this proposal’s amendments would make to the regulatory text and commentary of the 2017 Final Rule.
On June 6, 2019, the Bureau issued a final rule delaying the August 19, 2019 compliance date for the mandatory underwriting provisions of the 2017 Final Rule.