by Jeff Sovern
The Consumer Financial Protection Bureau, still under the leadership of an Obama-appointed director, is expected to scale back its new rule on small-dollar lending as it rushes to complete the regulation * * *
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The rule is now expected to focus on short-term payday loans that are typically due in two weeks, or the borrower’s next payday, with annual interest rates of as much as 390%. To be excluded are high-cost installment loans lasting 45 days or longer.
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People familiar with the matter said the rule is undergoing a peer review by other banking agencies, such as the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., with a deadline in early September.
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At a later date, the CFPB may issue a separate rule to address the longer-term loan market, which requires more complex regulations and involves a wider range of lenders, including banks and credit unions.
I wonder if the leak about the new rule came from the OCC or FDIC. The OCC's leadership, in particular seems hostile to the CFPB's consumer protection mission under the new administration.