Stay of Litigation and Compliance Date Continued in Payday Lending Rule Lawsuit

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Following the status report filed last week by the parties involved in the lawsuit challenging the CFPB’s Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule, the Texas district court faced with the case ordered that the stay of litigation and the stay of the compliance date for the rule’s payment provisions are continued. The court’s order, which was entered on August 6, requires the parties to “file a Joint Status Report informing the court about proceedings related to the Rule and this litigation as the parties deem appropriate, but no later than Friday, December 6, 2019.” (Emphasis in original)

The parties’ status report informed the court that the CFPB issued a final rule on June 6 delaying the compliance date for the underwriting provisions of the rule until November 19, 2020, and that the bureau continues progressing on its other rulemaking, which proposed to remove the underwriting provision. The order indicates that neither party requested that the court “lift the stay of litigation or the stay of the compliance date at this time.”

With the prior August 19 compliance deadline for the payment provisions looming, this order seems to solidify the delay of the compliance date until potentially as late as December 6.

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.

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