On June 14, the CFPB published a press release announcing that its 2017 Payday, Vehicle Title and Certain High-Cost Installment Loans Rule (“Payday Lending Rule”) will go into effect on or about March 30, 2025. According to the Bureau, the rule will target unfair and abusive practices in short-term installment lending and will aim to curb lenders’ efforts to repeatedly withdraw payments from a borrower’s bank account, even after knowing the borrower’s account was shown to have insufficient funds. The CFPB determined such debiting practices rarely benefited lenders and created negative consequences for borrowers such as overdraft and insufficient fund fees, or even account closures by their banks.

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