By Yuka Hayashi and Lalita Clozel
WASHINGTON—The Trump administration said Wednesday it will overhaul an Obama-era payday loan regulation, unveiling a proposal to remove a lending requirement that would have made it difficult for companies to offer high-cost consumer loans.
The Consumer Financial Protection Bureau as part of the move said it would postpone until November 19, 2020 the date when the payday lending rule goes into effect.
The rule was the first federal effort to regulate short-term lending aimed at lower-income consumers and were set to go into effect in August. The Trump administration’s proposal will now go through a fresh administrative process that will take several months to complete, including a 90-day public comment period starting shortly.
The announcement follows years of lobbying by payday and auto-title lenders to block the Obama payday-lending rule. The industries have said the regulation would wipe out their business by imposing onerous requirements to determine up front the likelihood customers can repay the loan.