CFPB Will Not Prioritize Enforcement of Payday Lending Rule

April 9, 2025 |

(From League InfoSight 360) – On March 28, 2025, the Consumer Financial Protection Bureau (CFPB) announced that it will not prioritize enforcement or supervision actions with regard to the payday lending rule. In its press release, the CFPB said that it is further contemplating issuing a notice of proposed rulemaking that would further narrow the scope of the rule.

By way of reminder, the payday lending rule, which took effect on March 30, requires covered financial institutions to:

  • Obtain a new and specific automatic payment authorization for a covered loan after two consecutive automatic payment attempts have failed, and
  • Provide specific disclosures and notices in connection with a covered loan.

Only lenders that originate more than 2,500 covered loans in a calendar year are covered by the requirements of the rule.