Joe Rodriguez, of counsel in Morrison & Foerster’s Financial Services Group, was quoted regarding the Consumer Financial Protection Bureau's proposed payday rule in the article, “The Morning Risk Report: Payday Lending Proposal May Revolutionize Industry,” published by The Wall Street Journal on June 6, 2016.
Mr. Rodriguez said the ability-to-pay requirement brings payday loans closer to a standard mortgage or credit-card loan, though a payday lender will not only be required to look at a consumer’s income and debt, but also at everyday living expenses. It will be tough for those taking out payday loans to meet the ability-to-pay requirement, he said. “Many live paycheck to paycheck,” he noted. While saying the proposal fundamentally changes the industry, “lenders who are smart and are willing to spend a little money on compliance will be able to make it work,” said Mr. Rodriguez.