From the Web: CFPB Seeks to Continue Stay on Payday Lending Rule Compliance Date

Parties in lawsuit on the rule, currently under reconsideration, debate its ability-to-repay provisions.

3/15/2019 7:30 AM

NewsCFPB
From the Web: CFPB Seeks to Continue Stay on Payday Lending Rule Compliance Date

A new status report for a lawsuit challenging the Consumer Financial Protection Bureau’s final small-dollar lending rule in a Texas federal district court provides an update on the parties’ views on continuing to stay the August 2019 compliance date of the rule as well as the litigation while the bureau reconsiders the rule, according to a blog post from Ballard Spahr LLP.

According to Ballard Spahr partner Jeremy Rosenblum:

“The new status report sets forth the parties’ views on whether the court should continue to stay the lawsuit and the Payday Rule’s Aug. 19, 2019 compliance date.  The stays were entered in, respectively, June 2018 and November 2018 “pending further order of the court.”  Early last month, the CFPB issued proposals to rescind the Payday Rule’s ability-to-repay (ATR) provisions in their entirety and delay the compliance date for the ATR provisions unti Nov. 19, 2020. The proposals would leave unchanged the Payday Rule’s payment provisions and their Aug. 19 compliance date.

In the new status report, the parties agree that it is appropriate for the stay of the ATR provisions to continue and for the litigation over the ATR provisions to remain stayed until the CFPB concludes its rulemaking.

The parties disagree, however, about the reasons for, or the appropriate duration of, the continuation of the stays of the compliance date for the payment provisions and the litigation to the extent it challenges the payment provisions. The trade groups seek a continuation of the stays until the bureau completes its rulemaking on the ATR provisions … For its part, the CFPB is not seeking to lift the stays of the litigation challenging the payment provisions and their compliance date at this time but it does not believe there is a basis for continuing the stays until the bureau completes its rulemaking to address the ATR provisions.”

Read more analysis of the lawsuit and pending rulemaking from Ballard Spahr.

Related Content from ACA International:

CFPB Faces Lawsuit on Payday Lending Rule

BCFP Continues Support for Payday Lending Rule Reconsideration in Court Filing

CFPB Proposes Changes to 2017 Payday Lending Rule

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