On February 20, 2019, the Consumer Financial Protection Bureau released a small entity compliance guide (opens new window) summarizing the payment-related provisions of the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule (Payday Lending Rule).
The Payday Lending Rule prohibits, among other things, payday and certain other lenders from making a new attempt to withdraw funds from an account where two consecutive attempts have failed, unless consumers consent to further withdrawals.
The guide focuses on the payment provisions found in Subpart C of the Payday Lending Rule. It also summarizes the Payday Lending Rule’s general coverage provisions, and record retention and compliance program requirements related to the payment provisions. The guide specifically notes the Payday Lending Rule exempts loans conforming to the NUCA’s Payday Alternative Loan program requirements.
Notwithstanding the Bureau’s recently issued proposed rulemaking — which, if finalized, would rescind the underwriting standards of the Payday Lending Rule — the payment provisions will take effect August 19, 2019.
To access the Payday Lending Rule go to https://www.federalregister.gov/documents/2017/11/17/2017-21808/payday-vehicle-title-and-certain-high-cost-installment-loans (opens new window).
To access the proposed rulemaking go to https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/payday-vehicle-title-and-certain-high-cost-installment-loans/ (opens new window).
If you have questions about this information, please contact the NCUA’s Office of Consumer Financial Protection at (703) 518-1140 or by email at ComplianceMail@ncua.gov. You can also contact your NCUA regional office or your state supervisory authority.