CFPB Reaffirms Plan to Overhaul Payday Lending Rule
The CFPB “will address reconsideration of the rule on the merits as well as address changes to its compliance date.”
In its latest update to its regulatory agenda, the agency said that rule “will address reconsideration of the rule on the merits as well as address changes to its compliance date.”
The strict payday rule was issued during the tenure of former Director Richard Cordray, who left the agency. Acting Director Mick Mulvaney has raised questions about the rule and the research justifying it.
In a lawsuit filed by a payday lending trade group, the CFPB has sided with the association, saying that the rule, as adopted, may not be fair.
In its regulatory agenda, the NCUA said it plans to issue final rules that could create a new payday loan alternative. The target date for those final rules is December, according to the document, but that date may simply be a placeholder, with the agency issuing the rules sometime in the future.
In its regulatory update, the CFPB also said it is analyzing more than 86,000 comments that were submitted in response to Mulvaney’s requests for information about bureau activities. The agency said that based on those comments, the bureau plans to “refine its rulemaking priorities” no later than the Spring.
The bureau also said it plans to:
- Issue rules to exempt certain creditors with assets of $10 billion or less from certain escrow requirements under Dodd-Frank.
- Issue rules governing the Home Mortgage Disclosure Act to better protect consumer privacy interests.
- Delay implementation of the Dodd-Frank requirements to require financial institutions to collect, report and make public certain information about credit applications made by women-owned, minority-owned and small businesses.
- Issue no later than March a Notice of Proposed Rulemaking dealing with communication practices and consumer disclosures in the debt collection business.