On October 5, 2017, the CFPB issued its final rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans, 12 C.F.R. pt. 1041. For certain short-term and balloon loans, the rule requires lenders to determine that borrowers are able repay the loans and limits loan refinancing. The rule also limits a lender’s ability to repeatedly cash a check or debit a consumer’s account after two unsuccessful attempts. This debit limit applies not only to all short-term and balloon loans, but to longer-term installment loans and lines of credit with an APR under the Truth in Lending Act that exceeds 36%.
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FTC Video on Debt Collection
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