Payday Lenders Get Breaks in Revised CFPB Rule (2)

July 7, 2020, 4:34 PM; Updated: July 7, 2020, 7:10 PM

Payday lenders won’t have to determine whether borrowers can afford their loans under a new Consumer Financial Protection Bureau rule governing the industry.

The CFPB issued a final regulation Tuesday that eliminates loan underwriting and income verification requirements that both consumer advocates and the industry said would have reduced payday lending significantly. The so-called ability to repay provisions were part of the original payday lending rule—which was completed in October 2017 shortly before former CFPB Director Richard Cordray left office, but never took effect.

The CFPB also said it would conduct research to find new information that could better help ...

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