New CFPB Rule Targets Lenders of Pay-Day Loans, Auto Title Loans, and Other High-Cost Loans

By: Elayna Zammarelli

Saalfeld Griggs Litigation, Creditors’ Rights & Bankruptcy Practice Groups

Oregon Business Lawyers

Today the Consumer Financial Protection Bureau (“CFPB”) proposed rules targeting the pay-day, auto title and deposit advance products in the lending industry. Under the proposed rule, lenders would be required to ensure a consumer has the ability-to-repay (“ATR”) the loan prior to making such a loan. This rule would be in addition to any existing state laws affecting the same products. Read more about the CFPB’s rule from its press release: “CONSUMER FINANCIAL PROTECTION BUREAU PROPOSES RULE TO END PAYDAY DEBT TRAPS: Rule Would Require Lenders to Determine Whether Consumers Have the Ability to Repay Payday, Auto Title, and Certain Other High-Cost Loans.