FOIA request uncovers positive payday loan comments

CFPB FOIA payday commentsEarlier this week, the Consumer Financial Services Association of America (CFSA), the trade association that represents the short-term lending industry, issued a statement and released documents obtained from a Freedom of Information Act (FOIA) request filed December 31, 2015.

The CFSA FOIA request produced records of over 12,000 positive comments that short-term loan customers submitted to the CFPB’s “Tell Your Story” portal.

Proposed payday rule comment deadline extended

Proposed payday rule comment deadline extendedOn July 22, the CFPB published its proposed rule for Payday, Vehicle Title, and Certain High-Cost Installment Loans. The Bureau also concurrently issued a Request for Information (RFI) which solicits information and evidence regarding to help assess whether there are other categories of loans for which lenders do not determine the consumer’s ability to repay that may pose risks to consumers.

Further, the Bureau requests responses as to whether there are other lender practices with regard to covered loans that may warrant further action by the CFPB in addition to its proposed payday rule.

CFPB’s Short-Term, Small-Dollar Loan Regulations

Earlier this year, the Consumer Financial Protection Bureau (CFPB) issued its lengthy short-term, small-dollar loan regulations which will require lenders to determine whether applicants can afford to obtain a payday loan. The Bureau’s proposed rule is designed to limit the circumstances under which lenders can issue short-term loans, known as “payday” loans, which can carry interest rates up to 390%.