The Consumer Financial Protection Bureau won’t enforce restrictions on payday lending that were finalized during the first Trump administration and are slated to become operative over the weekend, the agency announced.
The CFPB’s rule restricts how often payday, auto title, and other companies issuing small-dollar, short-term loans can access borrowers’ bank accounts to prevent roll-overs, and it bars lenders from accessing customer bank accounts multiple times if they were denied.
The rule was finalized in 2020 under the leadership of former CFPB Director Kathy Kraninger, a Trump appointee.
The rule is set to become operative on March 30 after years ...