TCH Comments on Payday Lending Rule Compliance Date
The Clearing House (TCH) submitted a comment letter urging the CFPB to delay the compliance date for the payment-related provisions of the Payday Lending Rule (“Payment Provisions”). The CFPB had proposed to delay the Payday Lending Rule’s mandatory underwriting provisions from August 19, 2019 to November 19, 2020 as it reevaluated those aspects of the rule, but had not proposed a similar delay for the Payment Provisions, which include new notice requirements and limits on attempts to collect payments that are owed on loans covered by the rule.
TCH argued that a delay of the Payment Provisions was merited given questions about the broad scope of covered loans, which includes certain depository institution credit products that are not traditional “payday” loans. TCH emphasized continued concern that the CFPB’s rationale for the Payment Provisions is based on the abusive practices of non-bank lenders as opposed to the heavily regulated and supervised credit products of depository institutions; and encouraged the CFPB to consider other reasonable modifications to the Payment Provisions to eliminate unnecessary complexity and redundancy.