CFPB issues guide for payment-related requirements of Payday Lending Rule

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued a new Small Entity Compliance Guide for its Payday, Vehicle Title, and High-Cost Installment Lending Rule (Payday Lending Rule), specifically discussing payment-related requirements. The Bureau notes that its Feb. 6, 2019, notice of proposed rulemaking to reconsider the mandatory underwriting provisions of the Payday Lending Rule does not impact the payment-related requirements of the rule. The purpose of the guide is to provide information that may be helpful when implementing the payment-related requirements of the Payday Lending Rule.

The guide summarizes the rule's general provisions as well as its record retention and compliance program requirements as they relate to the payment provisions. In addition, examples are provided to help illustrate certain aspect of the rule.