To determine whether a loan is subject to the Payday Lending Rule, one should carefully review the coverage criteria, the exclusions, and the exemptions set forth in the Rule.
No. The Payday Lending Rule does not specifically exclude or exempt banks or credit unions from coverage under the Rule, so it is possible that a bank or credit union could be required to comply with the Payday Lending Rule. Assuming that the bank or credit union regularly extends credit, a bank or a credit union has to comply with the Payday Lending Rule if it makes loans that satisfy the criteria for covered loans and that do not meet the conditions for exemptions or exclusions. In particular, banks and credit unions should review the exemptions for alternative loans and accommodation loans found in 12 CFR §1041.3(e) and (f). Additional information about the exemptions and exclusions is also available in Section 2 of the Small Entity Compliance Guide
Also, as noted in the Payday Lending Rule Payment Transfers Questions below, and in Section 4.2 of the Small Entity Compliance Guide