Stepping Back? CFPB Reconsiders Protecting Cash Advance Borrowers

Stepping Back? CFPB Reconsiders Protecting Cash Advance Borrowers

The Consumer Financial Protection Bureau (CFPB) may be taking steps to undo them after several years of working to pull together borrower-friendly rules for the payday lending industry. The agency has not yet started the official “undoing” process, but Mick Mulvaney, the acting director, announced in a Jan. 16 statement, “the Bureau intends to take part in a rule-making procedure so the bureau may reconsider the Payday Rule.” It really is one of the notices showing a change in way for the bureau since Mulvaney took the lead in November whenever previous manager Richard Cordray stepped down.

The declaration announced that while Jan. 16 was the effective date for the Payday Rule, the CFPB ended up being waiving the due date of April 16 to submit RIS applications. Underneath the brand new guideline, companies like Veritec, Clarity and Teletrack will have to apply to become a subscribed information system (RIS) beneath the Payday Rule so they really could monitor pay day loans and hold a few of the the underwriting information for scores of customers. Continue reading »