are payday loans legal 
efforts to regulate payday lenders were proposed in 2016 under the obama administration and put in place in 2017 when the consumer financial protection bureau cfpb under then director richard cordray passed rules to protect consumers from what cordray referred to as debt traps 8the rules included a mandatory underwriting provision requiring lenders to assess a borrower s ability to repay a loan and still meet everyday living expenses before the loan is made the rules also required lenders to provide written notice before trying to collect from a borrower s bank account and further required that after two unsuccessful attempts to debit an account the lender could not try again without the permission of the borrower 8these rules were first proposed in 2016 and under the biden administration the new leadership at the cfpb established stricter rules for payday lending which became mandatory on june 13 2022 98in feb 2019 the cfpb then under the trump administration and director kathleen l kraninger issued proposed rules to revoke the mandatory underwriting provision and delay implementation of the 2017 rules 10in june 2019 the cfpb issued a final rule delaying the aug 2019 compliance date and on july 7 2020 it issued a final rule revoking the mandatory underwriting provision but leaving in place the limitation of repeated attempts by payday lenders to collect from a borrower s bank account 111213