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ABA: The American Bankers Association
Compliance News

CFPB Proposes to Eliminate Small-Dollar Lending Rule's Ability-to-Repay Test

The Consumer Financial Protection Bureau proposed to remove the prescriptive underwriting provisions from the small-dollar lending rule it issued in October 2017. The rule imposes an ability-to-pay test on a wide swath of small-dollar loans of 45 days or less, including payday loans, auto title loans and bank-provided loans with balloon payments. The CFPB also proposed to extend the compliance date for the rule’s underwriting provisions by 15 months to Nov. 19, 2020.