Small Dollar Lending Rule Disclosure Testing (Payday)

DRAFT – FOR TESTING PURPOSES ONLY

Covered Short-Term & Long-Term Loans with Balloon Payments
1. You will not be able to reborrow, refinance, or roll over this loan.
2. If the consumer does repay, she may be prohibited from reborrowing another covered short-term loan (or longer-term loan with a
balloon payment) for 60 days following the end of the loan.

[first and final origination]

Notice of restrictions on future loans
Under federal law, refinancing or rolling over this loan may
be prohibited. You also may not be able to take out another
loan like this one for 60 days after you pay off this loan. For
more information, visit consumerfinance.gov/XYZ.
If you are unsure whether you will be able to pay the full
balance of $460.00 on July 18th, 2015, you should not take
out this loan.
[ ] I understand that I may not be able to refinance or roll
over this loan.
[ ] I understand that I may not be able to take out another
loan like this one for 60 days after paying off this loan.

DRAFT – FOR TESTING PURPOSES ONLY

Alternative Loan with Amortization
1.
2.
3.

The consumer is limited to three/four total loans in a sequence.
The second loan in a sequence is limited to 66 or 75% of the first loan. The third loan is limited to 33 or 50% of the first loan. The fourth loan is limited to 25% of the first
loan. Note: it is undecided whether the sequence will be limited to 3 or 4 loans.
After the sequence ends, the consumer cannot take out another covered short-term loan (i.e., either an underwritten loan or an ESTBL) or covered longer-term loan with a
balloon payment for 60 days

[first origination]
[second and third originations]

Notice of restrictions on future loans
Under federal law, you will not be able to roll over or refinance the
full balance of this loan. If you take out a new loan like this one within
60 days of paying off this loan, you will have to take out a smaller
loan.
Here are the borrowing limits for any loans like this one that you take
out within 60 days of paying off this loan:
Loan order

Start date

Notice of borrowing limits on this loan and future loans
[Add text below to base disclosure, plus an updated table]
Our records show that you have had a loan like this one in the past
60 days. Under Federal law, this loan must be smaller than your
previous loan.

Maximum amount
that you will be able
to borrow

[fourth and final origination]
Notice of borrowing limits on this loan and future loans

Loan #1 (this loan)

July 11, 2015

$400.00

[Add text below to base disclosure, plus an updated table]

Loan #2

--

$300.00

Loan #3

--

$200.00

Loan #4

--

$100.00

Our records show that you have had three loans like this one without
taking a 60 day break between the prior loans. Under Federal law,
this loan must be smaller than your prior loans. And after you repay
this loan, you will not be able to take out another loan like this one for
60 days.

Loan #5

Not allowed

Not allowed

After your third loan, you will not be able to take out another loan like
this one for 60 days.
[ ] I understand that I will not be able to refinance or roll over the full
amount of this loan
[ ] I understand that if I take out three loans like this one, I will not
be able to take out another loan like this one for 60 days after paying
off the fourth loan.

[ ] I understand that I will not be able to refinance or roll over this
loan.
[ ] I understand that I will not be able to take out a loan like this one
for 60 days after paying off this loan.

DRAFT – FOR TESTING PURPOSES ONLY

Alternative Loan with Off-Ramp
1.
2.
3.
4.
5.

The consumer is limited to three total loans in a sequence.
If the consumer cannot repay the third loan in a sequence when due, the loan is automatically converted to an off-ramp.
The off-ramp will allow the consumer to repay the loan in x payments of y dollars due every z weeks.
The off-ramp will not cost the consumer anything [no additional fees or interest at all].
After the sequence ends, the consumer cannot take out another covered short-term loan (i.e., either an underwritten loan or an ESTBL) or
covered longer-term loan with a balloon payment for 60 days.

[first origination, with placeholder for second origination]

[third origination]

Notice of restrictions on future loans

Notice of restrictions on future loans

Under federal law, you will not be able to take out more
than three loans like this one without taking a break of at
least 60 days between loans. [for second origination: This is
your first/second loan without taking a 60-day break.] If you
take out three loans and cannot repay the third loan, your
loan will turn into an installment plan with [monthly]
payments. The installment plan has no additional fees or
interest.

Our records show that you have had two loans like this one
without taking a 60 day break between the prior loans.
Under Federal law, you will not be able to take out another
loan like this one for 60 days after you pay off this loan.

After you take out three loans in a row, you will not be able
to take out another similar loan for 60 days.

[ ] I understand that if I cannot repay this loan when it is
due, my remaining balance will be payable by an
installment plan.

[ ] I understand that after three loans in a row, my
remaining balance will be payable by an installment plan.
[ ] I understand that after I take out three loans like this
one, I will not be able to take out a similar loan for 60 days
after paying off the third loan.

If you cannot repay this loan when it is due, it will turn into
an installment plan with [monthly] payments. The
installment plan has no additional fees or interest.

[ ] I understand that after I pay off this loan, I will not be
able to take out a loan like this one for 60 days.
[conversion to installment plan]