On January 10, 2025, the CFPB published a blog post to create consumer awareness on the new protections for payday and installment loans that will take effect March 30, 2025. The new rule addresses lenders’ unfair and abusive practice of repeatedly trying to withdraw money from an account to pay off the loan, even after the account had been shown to be empty.

The regulation, initially scheduled to be implemented in 2019, faced delays due to legal challenges aimed at blocking the rule. Ultimately, the court of appeals that reviewed the case dismissed the payday lenders' objections, confirmed the validity of the regulation, and supported the CFPB’s determination that the practice in question was deemed unfair.

Read the CFPB’s blog post here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

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