On January 16, 2018 the Consumer Financial Protection Bureau (CFPB) issued the following statement on the Payday Rule:
“January 16, 2018 is the effective date of the Bureau of Consumer Financial Protection’s final rule entitled “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (“Payday Rule”). The Bureau intends to engage in a rulemaking process so that the Bureau may reconsider the Payday Rule.
Although most provisions of the Payday Rule do not require compliance until August 19, 2019, the effective date marks codification of the Payday Rule in the Code of Federal Regulations. Today’s effective date also establishes April 16, 2018, as the deadline to submit an application for preliminary approval to become a registered information system (“RIS”) under the Payday Rule. However, the Bureau may waive this deadline pursuant to 12 C.F.R. 1041.11(c)(3)(iii). Recognizing that this preliminary application deadline might cause some entities to engage in work in preparing an application to become a RIS, the Bureau will entertain waiver requests from any potential applicant.”
Stay tuned for more details. The extended rulemaking process could be interesting.
Informational About the October 5, 2017 final rule is available at: https://www.jackscomplianceresource.com/final-payday-rules/
Information regarding the June 2, 2016 proposed regulation is available at https://www.jackscomplianceresource.com/cfpb-releases-proposal-to-eliminate-payday-debt-traps/
A copy of the October 5, 2017 final rule is available at http://files.consumerfinance.gov/f/documents/201710_cfpb_final-rule_payday-loans-rule.pdf.
A Payday Loan Factsheet is available at http://files.consumerfinance.gov/f/documents/201710_cfpb_fact-sheet_payday-loans.pdf.
A copy of the January 16, 2018 statement is available at: https://www.consumerfinance.gov/about-us/newsroom/cfpb-statement-payday-rule/