CFPB Small-Dollar Lending Rules: Consumer Financial Protection Bureau Oversight
By My Payday Advance Consumer Underwriting & Financial Literacy Council
Federal regulatory standards: the 2017/2020 CFPB Payday Rule, payment withdrawal attempt limitations (2 consecutive failure rule), and unfair debt collection practices.
The Consumer Financial Protection Bureau (CFPB) enforces federal regulations under Title X of the Dodd-Frank Act to curb abusive small-dollar lending and debt collection practices.
1. Key CFPB Payment Processing Restrictions
Two-Consecutive Attempt Limit: Lenders cannot initiate more than two consecutive debit attempts on a borrower's bank account after two consecutive attempts fail for insufficient funds.
Mandatory Consumer Notice: Lenders must provide a formal written notice before attempting subsequent bank account withdrawals.
Overdraft Fee Protection: Prevents cascading NSF (Non-Sufficient Funds) charges generated by repeated automated clearing house (ACH) requests.
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My Payday Advance Consumer Underwriting & Financial Literacy Council
Our financial research team monitors Truth in Lending Act (TILA) compliance standards, CFPB small-dollar lending enforcement, state usury laws, and credit union PAL program benchmarks.
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