Involved Parties: Primary agency is the CFPB, reversing prior aggressive stance under Director Rohit Chopra (2017–2023).[1][3] Context ties to President Trump's second term starting January 2025, driving federal rollbacks across CFPB, FTC, and others.[2][6] Enforcement dropped sharply: 5 actions in 2025 (1 federal, 4 state, $1.085B recoveries, led by New York case) vs. 15 in 2024 ($63M).[1][6] Payday lenders' trade groups petitioned Supreme Court in March 2025; states filled gaps.[2][11]
Context and Timeline: The rule, promulgated 2017, faced delays; compliance set for March 30, 2025, after rescinding ability-to-repay provisions.[3][9] Post-2024 election, Trump's administration prompted CFPB retrenchment amid broader federal pullback, contrasting 2017–2023 focus on small-dollar scrutiny.[1][2][6] Payday/small-dollar loans persist in 2026, mostly online or in permissive states (South/Midwest), with state variations in caps.[5]
Newsworthiness Now (April 2026): As 2025 Year-in-Review reports publish (e.g., Goodwin's March 31), this shift underscores ongoing federal retreat—fewer actions, state patchwork rise—impacting lenders' compliance amid 2026 predictions of litigation and state focus.[1][2][4][6] With rule effective nearly a year and payday products evolving (e.g., apps), it highlights regulatory flux for underbanked consumers and industry margins.[5][13]