§ 1041.4 Identification of unfair and abusive practice.
This version is not the current regulation.
You are viewing a previous version of this regulation with amendments that went into effect on
Aug. 16, 2019. View all versions of this regulation
Payday Lending Rule
Previous version (effective
Aug. 16, 2019 to
Oct. 20, 2020)
It is an unfair and abusive practice for a lender to make covered short-term loans or covered longer-term balloon-payment loans without reasonably determining that the consumers will have the ability to repay the loans according to their terms.
1. General. A lender who complies with § 1041.5 in making a covered short-term loan or a covered longer-term balloon-payment loan has not engaged in the unfair and abusive practice under § 1041.4. A lender who complies with § 1041.6 in making a covered short-term loan has not committed the unfair and abusive practice under § 1041.4 and is not subject to § 1041.5.
