Thursday, June 2, 2016

PaySound Loan Not Affected by New CFPB Proposed Rule


The new CFPB Proposed Rule released today on small dollar loans has raised many questions. However, it does not affect at all our digital PaySound loan.

Specifically, the Proposed Rule states that it covers loans with a term of 45 days or less, or, loans with a term greater than 45 days, provided that they have an all-in annual percentage rate greater than 36 percent.    The Proposed Rule specifically excludes overdraft services and lines of credit. (See page 5, our italics added)

Our PaySound® loan product does not fall under the Proposed Rule as it is a 1) line-of-credit,  2) exceeds 45 days, and 3) the all-in APR is 15% or less.  For more information, click here.


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