WASHINGTON, D.C. — The Consumer Financial Protection Bureau has announced a proposal to take away sections of its "Payday, Vehicle Title and Certain High-Cost Installment Loans" rule that pertains to underwriting requirements for payday, single-payment vehicle title and long-term balloon payment loans in an effort to increase access to credit for consumers.
According to the bureau, the Payday, Vehicle Title and Certain High-Cost Installment Loans rule, established in 2017, "reduces access to credit and competition" in certain states where residents have shown a need for payday lending services.
“The bureau will evaluate the comments, weigh the evidence, and then make its decision,” director Kathy Kraninger said in a statement. “In the meantime, I look forward to working with fellow state and federal regulators to enforce the law against bad actors and encourage robust market competition to improve access, quality, and cost of credit for consumers.”
The bureau first announced it would soon have a notice of proposed rulemakings (NPRMs) in regard to the underwriting requirements rule and has opened the proposed rescinding of the rule to a 90-day public comment period.