The Consumer Financial Protection Bureau completed a rule gutting limits on payday lenders, delivering long-anticipated regulatory relief to the small-dollar lending industry. The final rule released Tuesday rescinds underwriting requirements that had been imposed in a 2017 regulation under former CFPB Director Richard Cordray. Eliminating the “ability to repay” standards has long been a policy goal of the Trump administration.
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A 6-point security checkup for working from everywhere
No one has ever seen a year like 2020. These are unprecedented times for all of us — individuals, families, and organizations alike. As we continue adapting to the changing conditions, it is important for organizations to review the actions they have taken in response to the COVID-19 pandemic and assess the effects of those actions on the organization’s cybersecurity posture.
Federal Appeals Court Blocks Lawsuit Over ‘Misleading’ Debt Collection Efforts
Two debtors are barred from suing a collection agency over allegedly “misleading” dunning letters because they were never actually deceived, a federal appeals court that covers three Southeastern states including Florida ruled in a split decision this week.
True Accord Report Consumer Debt in the Age of COVID-19
In this report, we will discuss how U.S. consumers are engaging with their debts during this crisis, including how payments and other behaviors have changed. Then, we’ll explore the steps companies can take to better service consumers while also driving revenue during these uncertain times.
Attorney General Becerra Leads Multistate Lawsuit Against Secretary DeVos’ Attempt to Siphon Pandemic Relief Funds Away from Public Schools
SACRAMENTO – California Attorney General Xavier Becerra and Michigan Attorney General Dana Nessel are today leading a coalition of six attorneys general in a lawsuit against U.S. Department of Education (Department) Secretary Betsy DeVos’ unlawful attempt to siphon pandemic relief funds away from K-12 public schools. The lawsuit follows the latest effort by Secretary DeVos to undermine congressional intent through the promulgation of regulations that unlawfully reinterpret the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and run counter to efforts to ensure that students and schools with demonstrated financial need get the resources they have been promised.
CFPB Director Kraninger Announces Deputy Director; Additions to Executive Team
Washington, D.C. — Consumer Financial Protection Bureau Director Kathleen L. Kraninger today announced that Thomas Pahl will serve as the Deputy Director of the Bureau. Pahl has served as Policy Associate Director for Research, Markets, and Regulations since April 2018. Previously, Pahl was the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission.
Consumer bureau revokes payday lending restrictions
The Consumer Financial Protection Bureau (CFPB) on Tuesday revoked rules that required lenders to ensure that potential customers could afford to pay the potentially staggering costs of short-term, high-interest payday loans. The bureau released Tuesday the final revision to its 2017 rule on payday loans, formally gutting an initiative with roots in the Obama administration that was aimed at protecting vulnerable consumers from inescapable debt.
Consumer Financial Protection Bureau Issues Final Rule on Small Dollar Lending
WASHINGTON, D.C. — The Consumer Financial Protection Bureau today issued a final rule concerning small dollar lending in order to maintain consumer access to credit and competition in the marketplace. The final rule rescinds the mandatory underwriting provisions of the 2017 rule after re-evaluating the legal and evidentiary bases for these provisions and finding them to be insufficient. The final rule does not rescind or alter the payments provisions of the 2017 rule.
Deep Dive: How The COVID-19 Pandemic Is Moving SMB Lending, Disbursements Away From Paper Checks
The small- to medium-sized business (SMB) lending industry is used to adaptation, especially since the 2008 financial crisis, when legacy financial institutions (FIs) began pulling back and FinTechs and digital players stepped up in the space. The COVID-19 pandemic has rocked the industry, too, revitalizing the ongoing shift to digital as well as prompting a resurgence in the role of more established banks as prime SMB lenders.
