Key Takeaways From the CFPB’s Final Rule On Payday, Car Title, and Certain High-Cost Installment Loans

Key Takeaways From the CFPB’s Final Rule On Payday, Car Title, and Certain High-Cost Installment Loans

On October 5, the customer Financial Protection Bureau (CFPB or Bureau) released its long-anticipated rule that is final tiny buck financing, which takes care of payday, automobile name, and specific high-cost installment loans.1 The rule that is final 12 C.F.R. role 1041, which produces customer defenses for many credit items, and follows the CFPB’s June 2016 issuance of a proposed guideline.

Features

Along side supplying customer defenses regulating the underwriting of covered short-term and balloon-payment that is longer-term — including payday and vehicle name loans — the rule also incorporates disclosure and payment withdrawal attempt requirements for covered short-term loans, covered longer-term balloon-payment loans, and certain high-cost covered longer-term loans. Continue reading “Key Takeaways From the CFPB’s Final Rule On Payday, Car Title, and Certain High-Cost Installment Loans”