BCFP announces coming changes to payday rule
The Bureau of Consumer Financial Protection expects to issue proposed rules in January reconsidering its short-term, small-dollar rule, it announced Friday. The bureau stated it will make final decisions regarding the scope of the proposal closer to the issuance of the proposed rules, but it currently plans to propose revisiting only the ability-to-repay provisions, not the payments provisions.
“We hope any changes the bureau intends to make to its payday rule will consider a full exemption of credit unions, while still addressing consumer abuse in the market. Credit unions are recognized as the safest and most affordable providers of short-term, small-dollar loans, and this rule shouldn’t be aimed at them,” said CUNA Chief Advocacy Officer Ryan Donovan.
According to the bureau, the focus will be on the ability-to-repay is in part “part because the ability-to-repay provisions have much greater consequences for both consumers and industry than the payment provisions.”
The proposals will be published as quickly as practicable consistent with the Administrative Procedure Act and other applicable law, the bureau said.
CUNA, under its Campaign for Common-Sense Regulation, was successful in getting major changes in the short-term, small-dollar finalized, raising many concerns during the rulemaking process that were addressed by the bureau.