Andrew Grossman Comments on Challenge to CFBP Payday Lending Rule

News / October 29, 2019

Partner Andrew Grossman is quoted in an article published Oct. 29, 2019, by American Banker. The article, “Nothing Comes Easy for CFPB in Payday Lending Rule,” discusses a challenge to the Consumer Financial Protection Bureau’s (CFPB) payday lending rule. The formal petition claims the agency erred when it included debit transactions when barring lenders from making more than two unsuccessful attempts payments from a consumer’s checking account.

The rationale is that borrowers do not incur fees for insufficient funds when debit card payments are denied, but generally do face such fees when checks and ACH transfers are denied.

“The agency made what we consider a very big mistake, so we expect the agency to proceed through rulemaking to correct that mistake,” said Grossman, who wrote the petition for Advance Financial. The company specializes in revolving credit lines with annual percentage rates of up to 360 percent as an alternative to payday and installment loans.

Read the article (registration required).