NEW YORK (AP) — The Consumer Financial Protection Bureau is reconsidering a key rule enacted last year that would have protected consumers against harmful payday lenders.
The bureau, which came under control of the Trump administration late last year, said in a statement Tuesday that it plans to take a second look at the payday lending rules. While the bureau did not submit a proposal to repeal the rules outright, the statement opens the door for the bureau to start the process of revising or even repealing the regulations.
The CFPB, under Obama appointee Richard Cordray, finalized rules last year that would have put regulations on the payday lending industry nationwide. Lenders would have had to show that borrowers had the ability to repay loans instead of getting stuck in debt.