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Payday Lenders Ask for Injunction to Delay Payday Lending Rule
Tuesday, September 18, 2018 6:50 AM

Community Financial Services Association of America, a group representing payday lenders, is asking a federal judge in Texas to issue a preliminary injunction prohibiting the Bureau of Consumer Financial Protection from enforcing its controversial short-term lending rule.

The group filed suit in April challenging the agency’s rule, which was issued by former agency Director Richard Cordray, an Obama Administration appointee. The agency, now run by Trump Administration Acting Director Mick Mulvaney sided with the association, saying that the CFPB is revisiting the rules. The agency is widely expected to repeal or significantly weaken the rule.

At the same time, the NCUA is examining a proposed rule that officials said will encourage more credit unions to begin lending under the agency’s Payday Alternative Loan program.

Earlier this year, the payday lending association was unable to convince U.S. District Judge Lee Yeakel of the Western District of Texas to stay the rule from going into effect. However, the association is now asking for an injunction, saying its members will be irreparably harmed by it. In requesting the injunction, the payday lenders group argued that the bureau’s “unprecedented assault on payday lending” is based on a flawed statutory interpretation.

Read this article in its entirety at Credit Union Times.