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Here also we need to graduate these borrowings from asset based to cash flow based lines of credits with each drawdown repayable at the end of the term.
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In this regard, the Bureau notes that it is not proposing a mandatory cooling-off period applicable to covered longer-term loans, as proposed for covered short-term loans in proposed § 1041.
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” Encouraging or requiring borrowers to return to the store on the due date provides lenders an opportunity to offer borrowers the option to roll over the loan or, where rollovers are prohibited by State law, to reborrow following repayment or after the expiration of any cooling-off period.
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