- 1The final rule, filed April 30, excludes MCAs from Section 1071 reporting.
- 2The CFPB left open reconsidering MCA coverage in the future.
- 3The final decision runs 314 pages.
Merchant cash advances are now excluded from the CFPB's small business loan data collection requirements. In the final rules the agency filed on April 30, an earlier proposal to exclude MCAs from Section 1071 became final.
What the rule says
"Since MCAs are not covered credit transactions under this final rule, no MCA providers will be required to report," the document states. The rationale is laid out across the 314 pages of the final decision.
An open door
The CFPB did leave open the possibility of reconsidering whether to include MCAs years down the road. For now, though, MCAs will not count as a covered credit transaction for purposes of Section 1071 of the Wall Street Reform and Consumer Protection Act, after more than a decade of debate and confusion over the question.
The agency's filing is available on the Federal Register's public inspection site.
Source reporting: deBanked.
