Republicans on the House Financial Services Committee voiced criticism at a hearing yesterday examining the Consumer Financial Protection Bureau’s upcoming rules governing payday lenders, MorningConsult.com reported. The vast majority of questions from both Republicans and Democrats at the well-attended hearing were directed at the sole CFPB official on the panel, Acting Deputy Director David Silberman. The CFPB’s proposed rule, which will be final soon, creates an “ability to repay” standard for people seeking unsecured, short-term cash. The rule would mandate that lenders “verify the consumer’s income, major financial obligations, and borrowing history to determine whether there is enough money left to repay the loan after covering other major financial obligations and living expenses.” Silberman defended the bureau’s rule-making process, saying that CFPB officials had done due diligence to ensure that all perspectives, including those of the payday lending industry and their customers, had informed their decision. The payday lending rules, which could be finalized in the next several weeks, will focus on preventing “abusive and predatory practices,” Silberman said.
