Fifth Circuit Extends Stay on CFPB Payday Loans

Troutman Pepper
Contact

Troutman Pepper

On October 14, the Fifth Circuit issued a one paragraph order to extend a stay on Consumer Financial Protection Bureau (CFPB) payday lending regulations currently challenged by the Community Financial Services Association of America Ltd. and the Consumer Service Alliance of Texas. The stay will allow small dollar lenders to postpone the June 2022 compliance date.

Originally passed in 2017, the rule has faced persistent challenges. In 2020, a portion of the rule was repealed, which required payday lenders to assess borrowers’ ability to repay loans. Industry groups continue to challenge the rule, which limits how many times lenders can attempt to debit payments from borrowers’ bank accounts.

The two groups challenging the rule previously lost their case in a Texas district court, where the judge set a roughly nine-month countdown for the CFPB to implement the long-delayed rule starting in June. The Fifth Circuit’s order resets the compliance date to 286 days after the appeal is complete.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Troutman Pepper | Attorney Advertising

Written by:

Troutman Pepper
Contact
more
less

Troutman Pepper on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.