Payday Lender Group: CFPB Rule Still ‘Overreaching’

September 1, 2020David BaumannCFPB

The Consumer Financial Protection Bureau may have rescinded large parts of its payday lending rule, but the parts that remain are “unnecessary, arbitrary, capricious, overreaching, procedurally improper, and substantially harmful to lenders and borrowers alike,” associations representing payday lenders said last week, in an amended suit challenging the rule.

The Consumer Financial Services Association of America and its Texas affiliate had challenged the strict payday lending rule issued during the Obama Administration in the U.S. District Court for the Western District of Texas in 2018.

CFPB Attempts to Clarify PAL Loan Exemption from Payday Rule

August 12, 2020David BaumannCFPB

Certain loans modeled after the National Credit Union Administration’s Payday Alternative Loan program are exempt from the Consumer Financial Protection Bureau’s new payday loan rule, while others may not be, the CFPB said in a series of questions and answers about the new rule on Tuesday.

The agency reiterated that division, as it attempted to answer questions about the new rule.

Credit Unions Hoped for Broader Exemption from CFPB Payday Rule; Consumer Groups Blast Kraninger

July 8, 2020David BaumannCFPB

It seems that a lot of people are unhappy with the revised payday lending rule the Consumer Financial Protection Board issued Tuesday.

Credit union trade groups said the rule should have done more to exempt credit unions.

Consumer groups, on the other hand, said the rule eliminates virtually all consumer protections.

CFPB Rescinds Much of Strict Payday Loan Rule

July 7, 2020David BaumannCFPB

As widely expected, the Consumer Financial Protection Bureau on Tuesday rescinded its rule that requires that payday lenders verify that a borrower is likely to be able to repay the loan before it is approved.

CFPB Plans to Issue Final Payday Lending Rule; Target Date Has Slipped

July 2, 2020David BaumannCFPB

The Consumer Financial Protection Bureau said this week it still intends to repeal most of the Obama-era strict rule governing payday loans, although the date appears to have slipped.

Supreme Court Declares Single-Director Structure of CFPB Unconstitutional

June 29, 2020David BaumannCourts

The U.S Supreme Court on Monday declared the single-director structure of the Consumer Financial Protection Bureau unconstitutional.

The agency’s configuration is “incompatible with the structure of the Constitution, which—with the sole exception of the Presidency—scrupulously avoids concentrating power in the hands of any single individual,” the court said.

NCUA Encouraging Credit Unions to Make Small-Dollar, Short-Term Loans

May 20, 2020David BaumannNCUA

Amid the pandemic crisis, credit unions and banks should offer members and customers safe short-term, small-dollar loans that would mitigate the need for borrowers to re-borrow to repay loans, federal banking regulators, including the National Credit Union Administration, said Wednesday.

“Federally supervised financial institutions are well-suited to meet the credit needs of customers affected by the current COVID-19 emergency,” the NCUA, Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board and the Office of the Comptroller of the Currency said in a joint statement.

Democratic Senators Demand Kraninger Abandon Payday Loan Rulemaking

May 5, 2020David BaumannSenate

Democratic senators on Monday demanded that CFPB Director Kathy Kraninger abandon efforts to overhaul the agency’s controversial payday lending rule, contending that political appointees exerted improper influence in the process.

Waters: No PPP Loans for Payday Lenders

May 4, 2020David BaumannHouse

House Financial Services Chairwoman Maxine Waters (D-Calif.) is firing back at lawmakers who have called for allowing installment and payday lenders to be eligible for Paycheck Protection Loans, contending that such companies engage in predatory lending practices.

Washington Credit Union Daily

Reporting on regulations, legislation and political developments affecting credit unions.

Washington Credit Union Daily

Reporting on regulations, legislation and political developments affecting credit unions.