Federal Register: CFPB Amends Payday, Vehicle Title and High-Cost Installment Loan Regulations

A CFPB final rule amending regulations on payday, vehicle title and high-cost installment loans was published in the Federal Register. The rule will go into effect on October 20, 2020.

As previously covered, the final amendments follow a CFPB reevaluation of the 2017 final rule. The CFPB is revoking provisions that, among other things:

• deem a lender to be using "unfair and abusive" lending practices if the lender enters into a balloon-payment loan agreement without reasonably determining if the borrower has the ability to repay the loan according to its terms; and

• mandate underwriting requirements when making an ability-to-repay determination, and exempt certain loans from mandatory underwriting requirements.