The **Consumer Financial Protection Bureau (CFPB)** regulates payday, vehicle title, and certain high-cost installment loans under **12 CFR Part 1041 (Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule)**. The primary objective is preventing unfair, deceptive, and abusive acts or practices (UDAAP) in consumer credit markets.
1. Key CFPB Regulatory Protections
| Regulatory Provision | CFPB Rule Requirement | Consumer Protection Benefit |
|---|---|---|
| Payment Debit Attempt Limit | Maximum 2 consecutive failed ACH attempts | Prevents cascading bank overdraft and non-sufficient funds (NSF) penalty fees. |
| Consumer Disclosure Notice | Written notice 3–7 business days before unusual debit | Alerts borrowers to scheduled deductions exceeding customary amounts. |
| Reauthorization Mandate | Signed consumer authorization after 2 failed debits | Lenders cannot repeatedly drain bank accounts without fresh borrower consent. |