The CFPB Small-Dollar Lending Rule: Ability-to-Repay Underwriting Standards
The Consumer Financial Protection Bureau (CFPB) enforces federal regulations governing consumer credit underwriting and bank debiting practices.
Two-Failed-Attempt Debit Rule
Under CFPB regulations, lenders cannot attempt more than two consecutive debit withdrawals against a consumer's bank account if previous attempts failed due to insufficient funds, protecting consumers from compounding bank overdraft charges.
Ability-to-Repay (ATR) Assessment
Responsible lenders evaluate borrower debt-to-income (DTI) ratios, verifying that net monthly income after living expenses is sufficient to retire the advance without defaulting on fundamental housing or food obligations.
Cash 4 You Live Editorial & Consumer Advocacy Board
Our financial literacy researchers and regulatory analysts publish independent guides on Truth in Lending APR compliance, credit union PAL alternatives, and state usury statutes.