The bureau will seek additional comment on the rule and its compliance date.
1/17/2019 15:00
New details on the Consumer Financial Protection Bureau’s small dollar lending rule show it is expected to remove ability-to-repay requirements, American Banker reports.
The bureau started to revisit the approved rule and repayment provisions last year under Acting Director Mick Mulvaney.
“Under the current rule, which has not yet gone fully into effect, lenders must verify a borrower's income as well as debts and other spending, to assess one's ability to repay credit while meeting living expenses,” according to American Banker.
It also reports the bureau will release a proposal for public comment on the revised small dollar lending rule in the coming days or weeks.
A Notice of Proposed Rulemaking (NPRM) on the reconsideration of the small dollar lending rule addressing its merits and changes to the compliance date (currently August 2019) is expected no later than early next year, according to the latest rulemaking agenda released in October 2018, ACA previously reported.
Related Content from ACA International:
Proposed Small-Dollar Lending Rule is Slated to be Released in Early 2019