Yesterday, the CFPB announced that it will hold a field hearing on payday loans on March 25, in Nashville, TN. The event is open to members of the public who RSVP, and will feature remarks from consumer advocates, industry representatives, and CFPB officials, including Director Richard Cordray. The CFPB often announces policy initiatives in connection with its field hearings, and in its most recent rulemaking agenda the CFPB anticipated additional “prerule activities” related to payday loans and deposit advance products this month.
Payday lending was the topic of the CFPB’s first ever field hearing in January 2012, at which the Bureau released examination procedures for short-term, small-dollar lending. Since then, the CFPB has, among other things, (i) launched a payday loan complaint portal; (ii) announced its first enforcement action against a payday lender; (iii) participated in an ongoing, multi-agency effort to revise the Military Lending Act regulations; and (iv) published a white paper on payday loans and deposit advance products.