Payday Lending May Face Better CFPB Scrutiny Under Biden

Payday Lending May Face Better CFPB Scrutiny Under Biden

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Under brand new leadership, the CFPB may look for to need that payday loan providers assess a debtor’s capacity to spend. As well as missing such a requirement, the CFPB may pursue enforcement actions against loan providers for lending that the CFPB considers unfair or predatory, therefore putatively in breach of this customer Financial Protection Act.

Banking institutions along with other banking institutions running into the cash advance area should closely monitor the bureau’s approach to payday financing and assess present company techniques from this changing landscape that is regulatory. In specific, they ought to concentrate on supporting and documenting the reasonableness of credit extended to consumers afflicted with the pandemic that is COVID-19.

Some reports have actually recommended that looks for payday advances increased around 2020, when expanded unemployment benefits under the Coronavirus Aid, Relief and Economic Security Act ended july. Read more…