Jump to Content
ABA: The American Bankers Association
Compliance News

ABA Urges Extension of Compliance Date of CFPB Small-Dollar Lending Rule

In a comment letter filed today, ABA urged the Consumer Financial Protection Bureau to extend the compliance date for all provisions in the CFPB's final rule governing short-term, small-dollar loans.

In a comment letter filed today, ABA urged the Consumer Financial Protection Bureau to extend the compliance date for all provisions in the CFPB's final rule governing short-term, small-dollar loans. The extension would give the bureau time to revise the rule to exclude traditional consumer loans offered by banks — such as "bridge" loans, demand lines of credit, and loans secured by securities — which the rule would regulate if not modified. Finalized in October 2017, the rule imposes an ability-to-pay test, payment withdrawal restrictions, and notice requirements on a wide swath of short-term loans, including payday loans, auto title loans, deposit advances and longer-term loans with balloon payments. The bureau has proposed to rescind the rule's underwriting provisions and to extend the Aug. 19, 2019, compliance date for those provisions.