The Consumer Financial Protection Bureau says strict underwriting standards for small-dollar loans that were set to take effect later this year aren't necessary, according to a proposed rule issued by the agency today.
The CFPB, now run by Trump-appointed Kathleen Kraninger, said there's "insufficient evidence and legal support" for requiring payday lenders to assess a borrower's ability to repay a loan and still meet other expenses.
Under the new proposed rule, payday lenders, auto title lenders, and some installment lenders wouldn't have to determine a borrower's ability to repay high-interest rate, short-term loans, Bloomberg First Word reports.
