The Consumer Financial Protection Bureau (CFPB) has issued its proposed rule for “Payday, Vehicle Title, and Certain High-Cost Installment Loans.” The proposal is open for public comments until October 7, 2016. The rule covers loans with a term of 45 days or less, as well as some loans with a term greater than 45 days, provided that they (1) have an “all-in” annual percentage rate greater than 36 percent; and (2) either are repaid directly from the consumer’s account or income or are secured by the consumer’s vehicle. The rule identifies it as an abusive and unfair practice for a lender to make such a loan without first reasonably determining that the consumer has the ability to repay the loan. The proposed rule is written in a manner that will likely force many lenders to stop offering these small dollar loans.
More About the Speakers
Keynote Remarks by
The Honorable David Vitter (R-LA)
United States Senator
Followed by a Panel Discussion with
Executive Vice President, American Financial Services Association
Co-Founder, The Eris Group
Executive Vice President and Director, Brundage Management Company, Inc.
Norbert J. Michel, Ph.D.
Research Fellow in Financial Regulations