BREAKING: CFPB Announces It Will Not Enforce SDLR Payment Provisions

The Consumer Financial Protection Bureau (CFPB) announced today that it will not prioritize enforcement or supervision actions related to the Payment Withdrawal and Payment Disclosure provisions of the Payday, Vehicle Title, and Certain High-Cost Installment Loans Regulation—even after those provisions become operative on March 30, 2025. This includes the SDLR payment provisions.

According to the Bureau, this move reflects a strategic reallocation of enforcement resources to address what it views as more urgent threats to consumers, particularly service members, veterans, small businesses, and working-class taxpayers. The CFPB also indicated it is considering a notice of proposed rulemaking to narrow the scope of the rule more broadly.

The CFPB’s decision not to enforce the SDLR payment provisions indicates a shift in focus to other pressing consumer protection issues.

What This Means for Lenders

This announcement creates a significant shift in the regulatory landscape for small-dollar lenders.

Here’s what you need to know:

What it does mean:

• Lenders will not face CFPB penalties or supervisory actions solely for noncompliance with the Payment Withdrawal and Disclosure provisions
• The Bureau is prioritizing other enforcement areas, reducing immediate federal compliance pressure
• A future notice of proposed rulemaking could lead to formal amendments to the rule

What it doesn’t mean:

• This does not repeal or delay the rule — the March 30th operative date remains in effect
• State regulators and attorneys general may still consider enforcement of similar provisions under state laws
• Private litigation risk continues to be a consideration

We’ll continue to update our partners and clients as the CFPB’s rulemaking process progresses. For now, this is a signal to focus on borrower engagement and operational resilience—without overinvesting in regulatory changes that may ultimately be scaled back.

Have questions or want to discuss how this affects your operations? Reach out to your Payliance representative or contact us today.