CFPB Won't Prioritize Enforcing Payday Loan Payment Rule

The Consumer Financial Protection Bureau said it will not prioritize enforcing two key parts of its payday lending rule, easing pressure on short-term lenders. The bureau announced the change on March 28, 2025 — two days before the provisions were set to become operative.

Key takeaways

• The CFPB will not prioritize penalties tied to the rule's payment-withdrawal and payment-disclosure provisions.
• Those provisions became operative on March 30, 2025, and remain on the books.
• The rule covers payday loans, vehicle-title loans, and certain high-cost installment loans.
• The bureau said it would refocus enforcement on other priorities, citing service members and veterans.

What changed

The payment provisions are the surviving core of the CFPB's payday rule. They limit how often a lender may try to pull a scheduled payment from a borrower's bank account — repeated failed attempts can pile up overdraft and non-sufficient-funds fees — and they require lenders to give advance notice before a withdrawal.

The bureau framed the move as a shift in priorities, not a repeal, saying it would "keep its enforcement and supervision resources focused on pressing threats to consumers, particularly servicemen and veterans."

The earlier, more sweeping part of the 2017 rule — which would have required lenders to verify a borrower's ability to repay before lending — was removed in 2020, leaving the payment provisions as what remains of the original measure.

What it means for borrowers

The payment protections remain law even though the regulator has signaled it will not actively police them for now. Borrowers covered by the rule — including some vehicle-title and high-cost installment-loan customers — still have the right to advance notice before a lender withdraws a payment, but enforcement of violations is no longer a CFPB priority.