CFPB Sets June 2022 Compliance Date for Payday Rule

Nearly four years after the Consumer Financial Protection Bureau (CFPB) issued its final November 2017 “Payday, Vehicle Title, and Certain High-Cost Installment Loans” Rule (Payday Rule), we at long last have a compliance date — June 2022.

What Is the Payday Rule?

The Payday Rule, as initially finalized, had two primary components. First, for most short- and long-term loans with balloon payments, the Payday Rule made it an unfair and abusive practice for a lender to make such loans without performing an ability-to-repay analysis (Mandatory Underwriting Provisions).