CFPB National Payday Lending Rule Has Potential Pitfalls for New Jersey

CFPB National Payday Lending Rule Has Potential Pitfalls for New Jersey

NJCA:  CFPB Rule Needs Work, Poses Problems for States with Stronger Laws

New Jersey Citizen Action (NJCA) hails the Consumer Financial Protection Bureau (CFPB) issuing a proposed national rule, which attempts to eliminate abusive payday and car title lending.  NJCA, however, urges the Bureau to issue a final rule without loophole. The proposed rule does not require an ability-to-repay assessment for all payday loans, which could undermine the strong state usury and other consumer protection laws in place in New Jersey. It also fails to provide explicit reinforcement of …

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