Morning Consult, July 7, 2020: CFPB Scraps Ability-to-Repay Provision From Payday Rule: Instant Reaction
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The Consumer Financial Protection Bureau has finalized
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a long-awaited rollback of an Obama-era restriction requiring that payday lenders ensure that a borrower has the ability to repay a loan.
The move, which has been expected since before the coronavirus pandemic caused unemployment to skyrocket, has drawn criticism from congressional Democrats and consumer advocates, who argue that removing the ability-to-repay provision makes it easier for consumers to get trapped in a cycle of debt.
