The payday loan rule, not scheduled to take effect until mid-2019, would require lenders to make sure the borrower can afford to pay off the loan and still meet their daily expenses and obligations. It also would limit the number of such loans that could be made back-to-back to three per borrower.
Supporters of the rule are hoping the congressional resolution is dead in its tracks.
“Payday lenders put cash-strapped Americans in a crippling cycle of 300 percent-interest loan debt,” Yana Miles, senior legislative counsel at the Center for Responsible Lending, said in a statement.
The Consumer Financial Protection Bureau issued the rule in October under then-director Richard Cordray, who resigned from the agency in late November.
Although Cordray appointed an interim head from within the bureau — his former chief of staff, Leandra English — President Trump shortly thereafter announced that his budget director, Mick Mulvaney, will serve as acting director. Several days later, a U.S. district court judge rejected English’s request for a temporary restraining order to prevent Mulvaney from taking over.