Payday, Vehicle Title, and Certain High-Cost Installment Loans—Revocation Rule

The Bureau of Consumer Financial Protection is issuing this final rule to amend its regulations governing payday, vehicle title, and certain high-cost installment loans.

Specifically, the Bureau is revoking provisions of those regulations that: 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; prescribe mandatory underwriting requirements for making the ability-to-repay determination; exempt certain loans from the mandatory underwriting requirements; and establish related definitions, reporting, and recordkeeping requirements.

The Bureau is making these amendments to the regulations based on its re-evaluation of the legal and evidentiary bases for these provisions.

The Bureau is releasing a table of contents for this final rule as well as an unofficial, informal redline to assist industry and other stakeholders in reviewing the changes that this final rule makes to the regulatory text and commentary of the 2017 Final Rule.

Final rule

Read it on the Federal Register – July 22, 2020

View issued pdf – July 7, 2020

Proposed rule with request for public comment

Read it on the Federal Register – Feb. 14, 2019

View issued pdf – Feb. 6, 2019