Federal Court Upholds Key Protection for Payday Loan Borrowers
A federal district court has upheld a key provision of a Consumer Financial Protection Bureau (CFPB) rule designed to protect payday, car title, and other borrowers. The rule prevents these lenders from making repeated attempts to debit funds from a borrower’s account. These repeated attempts to debit funds often result in overdraft fees or even the closure of a borrower’s checking account.
Acting CFPB Director Dave Uejio indicated that the move by the court will help ensure consumers are protected: