Archive

EFFECTIVE DATE FOR THE PAYDAY LENDING RULES SET BY COURT

On August 31, 2021, the U.S. District Court for the Western District of Texas, granted the Consumer Financial Protections Bureau’s (CFPB) motion for summary judgment in Community Financial Services Association of America, Ltd., Consumer Service Alliance of Texas v. Consumer Financial Protection Bureau [and its Director], and ordered that the August 19, 2019, compliance date of the “Payday, Vehicle Title, and Certain High-Cost Installment Loans” Rule (12 CFR Part 1041 – Regulation OO) be stayed until […]

TEXAS COURT LIFTS ONE OF TWO PAYDAY LOAN STAYS

On August 20. 2020 the United States District Court for the Western District of Texas entered an order lifting one the stays in the case of Community Financial Services Association of America, LTD., et al., v. Consumer Financial Protection Bureau, et al. The lawsuit filed by two trade groups challenging the CFPB’s 2017 final payday loan rule. The stay was originally entered in June 2018 on the heels of the trade groups’ motion for a […]

FINAL PAYDAY LENDING RULE PUBLISHED

On July 7, 2020, the Consumer Financial Protection Bureau (CFPB) published a final rule, and related materials, related to the Payday lending and other small dollar products. The Payday Lending rules have been unfolding for several years. The final rule, implemented as Regulation OO, rescinds the mandatory underwriting provisions of the 2017 rule after re-evaluating the legal and evidentiary bases for these provisions and finding them to be insufficient. The final rule does not rescind […]

STATUS OF PAYDAY RULE LITIGATION

A new joint status report was filed on Friday April 24, 2020 with the Texas federal district court hearing the lawsuit filed by two trade groups challenging the Consumer Financial Protection Bureau’s(CFPB) final Payday, Vehicle Title, and Certain High-Cost Installment Loans rule (Payday Rule). The report notes that the CFPB “is continuing to make progress” on its proposed rulemaking to rescind the Payday Rule’s ability-to-repay (ATR) provisions and references the CFPB’s statement in its Fall […]

PAYDAY LOAN RULES APPLY TO YOU – ARE YOU READY?

The Payday, Vehicle Title, and Certain High-Cost Installment Loans (Payday Loan) Rule has been unfolding for years. Parts of the rule officially took effect on August 19, 2019; the Consumer Financial Protection Bureau (CFPB) has delayed the underwriting rules until November 19, 2020, and has further proposed eliminating those rules altogether. The August 19 date has been temporarily postponed by a court order. Some lenders need to build a comprehensive compliance management system (CMS) to […]