NEW YORK (AP) — The Consumer Financial Protection Bureau is saying it will revisit a crucial part of the bureau’s payday lending industry regulations, a move that will likely make it more difficult to protect consumers from potential abuses if changed.
The CFPB finalized rules last year that would, among other changes, force payday lenders to take into account the ability for their customers to repay their loans in a timely manner, in an effort to stop a harmful industry practice where borrowers renew their loans multiple times. Those “ability to repay” regulations are now under reconsideration, the Trump-controlled bureau said Friday.
The payday lending rules were the last regulation enacted by President Obama’s CFPB Director Richard Cordray before he resigned late last year.
