CFPB Blog Post Sets March 30, 2025 as Implementation Date for Payday Lending Rule

The Consumer Financial Protection Bureau (CFPB) recently announced that its 2017 Payday Lending Rule will go into effect on March 30, 2025. The rule will limit lenders from making more than two unsecured withdrawal attempts on a borrower’s account to help curb overdraft and insufficient fees for consumers. It also will require lenders to give consumers certain notices, such as advance notice, before attempting to withdraw a payment for the first time, as well as provide a notice of the consumer’s rights when two consecutive payment attempts fail.

The rule was planned to take effect in 2019 before it was delayed by industry litigation trying to block the rule. It was also the subject of the Supreme Court’s decision last month holding that the CFPB’s funding mechanism did not violate the U.S. Constitution.

The CFPB scaled back its final rule in 2017 to eliminate provisions included when the Bureau was under the leadership of Director Richard Cordray; under those standards, payday lenders were required to assess borrowers’ ability to repay. Under the Trump administration, the CFPB rescinded the ability-to-repay requirements. 

The Consumer Finance and Fintech Blog noted that while the Supreme Court’s decision seemingly allows for implementation of the rule, lenders and trade groups have indicated the possibility of further litigation.