COURT RULES IN FAVOR OF CFPB ON SUMMARY JUDGEMENT MOTION IN PAYDAY LOAN RULE PAYMENT PROVISIONS CASE

The Texas federal district court issued a Final Order granting summary judgement to the Consumer Financial Protection Bureau in a case challenging the validity of the Payment Provisions of the CFPB Payday Loan Rule. The decision means that the Payment Provisions will go into effect, but the court sided with the trade associations and extended the compliance date stay for 286 days after the final judgment. At the time the stay was entered, there were 286 days remaining before the Payment Provisions were required to be implemented by lenders. The court was persuaded that the industry should receive the full benefit of the temporary stay and noted that the delayed compliance date would allow time for appeal. While the decision in favor of the CFPB is disappointing, the delayed compliance date is good news. Read More