The Current State of Ability to Pay Compliance
| Published: | Dec. 10 , 2009 |
| Format: | |
| Length: | 2 pages |
Even though the proposed changes to Regulation Z have not yet been finalized, this brief presents steps for financial institutions (FIs) to take now for the February deadline and beyond. Of particular concern is how FIs will deal with the proposed regulation that requires them to consider a consumer’s “ability to pay,” whereby an FI must take into account the consumer’s income or assets and current obligations as part of the credit decision. Our research indicates that FIs are employing different approaches to meet the proposed regulatory requirements and that the right tools can help your business remain compliant and profitable.
