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Benjamin K. Olson Quoted in American Banker Article, “CFPB Move to Split Payday Rule May Help it Survive Congressional Challenge”

American Banker

Benjamin K. Olson

Benjamin K. Olson was quoted on August 29 2017 in an American Banker article, “CFPB Move to Split Payday Rule May Help it Survive Congressional Challenge,” which discussed the CFPB’s likely decision to scale back the proposed payday lending rule to protect it against the Congressional Review Act. The article stated, “The agency is expected to release a rule targeting payday loans of 45 days or less in the coming weeks, for now dropping plans to additionally rein in installment loans of longer maturity. The move allows CFPB to narrow the scope of its small-dollar rule, helping it to likely prevail against an expected challenge under the Congressional Review Act. The CFPB first proposed a payday lending plan in June of last year. Much of the criticism was directed at the proposal’s impact on longer-term installment loans, however. By delaying that part of the final rule, the CFPB gives itself some breathing room—and can more easily enact restrictions on shorter-term loans.”

Olson added, “A bifurcation approach under which the bureau adopts only a subset of the provisions in the proposed rule now and defers action on the rest would put the bureau in a good position to defend itself against a logical outgrowth challenge. The final rule doesn’t have to look exactly like the proposed rule.”

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