On March 26, 2015, the US Consumer Financial Protection Bureau announced that it is considering proposing rules that would require lenders to ensure that consumers can repay their loans. The proposals under consideration would also restrict lenders from attempting to collect payment from consumers’ bank accounts in ways that pile up excessive fees. The consumer protections being considered would apply to payday loans, vehicle title loans, deposit advance products and certain high-cost installment loans and open-end loans. The CFPB published an outline of the proposals under consideration in preparation for convening a Small Business Review Panel to gather feedback from small lenders, which is the next step in the rulemaking process.
A fact sheet summarizing the proposals under consideration is available at: http://files.consumerfinance.gov/f/201503_cfpb-proposal-under-consideration.pdf and an outline of the proposals under consideration is available at: http://files.consumerfinance.gov/f/201503_cfpb_outline-of-the-proposals-fromsmall-business-review-panel.pdf.