CFPB Cash Advance Rulemaking is Imminent and can Target Repeated Borrowing

CFPB Cash Advance Rulemaking is Imminent and can Target Repeated Borrowing

The CFPB has marshaled data against exactly just what it views as a suffered usage problem by pay day loan borrowers and it is “in the belated stages” of drafting guidelines to restrict pay day loan borrowing, in accordance with Director Cordray’s remarks ready for today’s field hearing.

It would appear that into the forseeable future the Bureau will issue a notice of proposed rulemaking by which it concludes that duplicated cash advance borrowing is “unfair” or “abusive” under the Dodd-Frank Act.

Along with a hearing today in Nashville, the CFPB Office of analysis has released another payday financing report, this 1 focused on measuring “loan sequences,” which it defines as “a series of loans applied for within week or two of payment of a previous loan.” particularly, the CFPB considers a renewal to mean either rolling over that loan for the charge or re-borrowing within 2 weeks after repaying that loan. Read More