Court Okays CFPB Payday Lending Regulation

Recently, the U.S. District Court for the Western District of Texas (Austin Division) granted the CFPB's 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 Aug. 19, 2019, compliance date of the CFPB's "Payday, Vehicle Title, and Certain High-Cost Installment Loans" Rule (12 CFR Part 1041) be stayed until 286 days after the date of the court's order.

Unless the Bureau further amends the rule to delay the effective date further, or the plaintiffs appeal the ruling of the court, the rule will become effective June 13, 2022. CFPB Acting Director Dave Uejio issued a statement following this decision.