Financial Protection Bureau (CFPB) issued its long-awaited payday
lending rule (the “rule”) on October 4th. This rule, which will go into
effect 21 months after publication
in the Federal Register, gives entities until the summer of 2019 to
digest and implement its contents. The rule will require lenders
offering a payday loan to do an ability to repay test before awarding a
loan and make it more difficult for borrowers to rollover
these typically short-term, high-interest loans.