Skip to main content

§ 1041.7 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.

It is an unfair and abusive practice for a lender to make attempts to withdraw payment from consumers' accounts in connection with a covered loan after the lender's second consecutive attempts to withdraw payments from the accounts from which the prior attempts were made have failed due to a lack of sufficient funds, unless the lender obtains the consumers' new and specific authorization to make further withdrawals from the accounts.

1. General. A lender who complies with § 1041.8 with regard to a covered loan has not committed the unfair and abusive practice under § 1041.7.

See interpretation of this section in Supplement I